Buckeye Technologies Inc.
Memphis, Tennessee, USA, 19 March 2010 -- (BUSINESS WIRE) -- Buckeye Technologies Inc. (NYSE:BKI) today announced that it is calling for redemption before maturity USD 25 million in aggregate principal amount of its outstanding 8.5% senior notes due 2013 at a redemption price of 102.833% of their principal amount in accordance with their terms. Buckeye will redeem these notes on 19 April 2010.
Upon completion of this redemption, USD 140 million of the 2013 notes will remain outstanding. A formal notice of redemption is being sent separately to the affected holders of the 2013 notes, in accordance with the terms of the indenture for these notes.
Buckeye plans to finance this redemption using drawings from its revolving credit facility. As of today, Buckeye had approximately USD 84 million of availability on its revolving credit facility and a cash balance of approximately USD 28 million. This redemption is expected to result in a one-time charge for early extinguishment of debt in Buckeye's fiscal fourth quarter of USD 1.2 million (of which USD 0.5 million is a noncash charge), or about USD 0.02 per share. The company expects to realize annualized interest savings of approximately USD 1.7 million, assuming variable interest rates remain close to current levels.
Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.