GrafTech Completes Equity Sale to Brookfield Asset Management

GrafTech International Ltd. (NYSE:GTI) announced that it’s completed its previously announced $150-million sale of preferred equity to a Brookfield Asset Management Inc. (TSX:BAM.A,NYSE:BAM) affiliate.
As quoted in the press release:

Under the terms of the investment agreement, GrafTech issued to Brookfield, in a private offering convertible preferred shares in two series, series A shares and series B shares. The series A shares are immediately convertible into GrafTechcommon shares equal to approximately 19.9% of the currently outstanding shares of GrafTech common stock, at a conversion price of $5.00 per common share, subject to customary anti-dilution adjustments. The series B shares will become convertible into common shares equal to approximately 2% of the currently outstanding shares only upon approval by GrafTech stockholders in accordance with New York Stock Exchange requirements. If approved, the two series will be combined into one series.
Both series of convertible preferred shares are entitled to dividends at a 7% annual rate. Dividends are cumulative and will accrue until paid. The proceeds from the sale of the convertible preferred stock, together with other cash and credit resources of the Company, will be used to promptly repay the Company’s currently outstanding $200 million senior subordinated notes in accordance with the requirements of the Company’s principal revolving credit facility.

Click here to read the full GrafTech International Ltd. (NYSE:GTI) press release.