Amsterdam, 27 June 2019 (Regulated Information) — AMG Advanced Metallurgical Group N.V. („AMG“, EURONEXT AMSTERDAM: „AMG“) announces that AMG Vanadium LLC (“AMG-V”), the borrower, has successfully priced $307.2 million of bonds in the US tax-exempt market, generating a total of $325 million in proceeds through the Ohio Air Quality Development Authority. Financial closing is scheduled for July 11, 2019. The bonds are guaranteed by AMG.
The bonds will fund a new greenfield resid spent catalyst recycling facility near Zanesville, Ohio approximately 25 miles from AMG-V’s current spent catalyst recycling facility in Cambridge, Ohio. The facility will create approximately 100 new, permanent production and management jobs in addition to 500-600 temporary jobs during construction.
AMG-V entered the market this morning offering a 5.00% coupon to yield 4.35%, maturing on July 1, 2049. In response to the over $940 million of orders (3.0x principal amount) received from 46 institutional investors, the yield was reduced to 4.28%, representing a spread of 197 bps to MMD (the tax-exempt AAA benchmark index). In order to provide flexibility in the future, the bonds are callable at 100% beginning on July 1, 2029.
“AMG has a stated objective to maintain our presence as the world leader in the recycling of resid spent catalysts not only now, but in the future,” said Dr. Heinz Schimmelbusch, CEO of AMG. “Essentially doubling our recycling capacity in Southeast Ohio represents a decisive step toward achieving that objective.”
Moody’s Investors Service has affirmed its B1 corporate family rating for AMG with a stable outlook, upgraded its secured rating from B1 to Ba3 and assigned a rating of B3 to the unsecured tax-exempt bonds.
S&P Global Ratings, a division of The McGraw Hill Companies, Inc. has affirmed its BB-issuer credit rating for AMG with a stable outlook, upgraded its secured rating from BB- to BB and assigned a rating of B with a stable outlook to the unsecured tax-exempt bonds.
The transaction was underwritten by Citigroup Global Markets Inc. and Morgan Stanley.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
About AMG
AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.
AMG Critical Materials produces aluminum master alloys and powders, ferrovanadium, natural graphite, chromium metal, antimony, lithium, tantalum, niobium and silicon metal. AMG Technologies produces titanium aluminides and titanium alloys for the aerospace market; designs, engineers, and produces advanced vacuum furnace systems; and operates vacuum heat treatment facilities, primarily for the transportation and energy industries.
With approximately 3,300 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, the Czech Republic, the United States, China, Mexico, Brazil, India, Sri Lanka and Mozambique, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
For further information, please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4979
Michele Fischer
mfischer@amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are “forward looking”. Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions, or circumstances on which any forward looking statement is based.
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