IRVING, Texas, July 16, 2020 (GLOBE NEWSWIRE) – Forterra, Inc. (“Forterra” or the “Company”) (NASDAQ: FRTA) today announced the closing of the offering previously announced by Forterra Finance, LLC and FRTA Finance Corp., each a wholly owned subsidiary of the Company, with an aggregate principal amount of $ 500.0 million of Senior Secured Notes due 2025 (the “Notes”).
The Notes have a fixed annual interest rate of 6.50%, which will be paid semi-annually on January 15 and July 15 in each year. The obligations under the Notes are guaranteed by the Company and existing and future subsidiaries of the Company (other than the issuers) which secure the Company’s senior secured term loan facility (the “Term Loan Facility” ) and the obligations of US borrowers under the Company’s senior facility, revolving credit facility backed by secured assets (the “ABL Facility”). The notes and related collateral are secured by first priority liens on the collateral that secures the term loan facility on a first priority basis (which is generally all assets other than those securing the ABL facility on a first priority below) and second priority liens on the collateral that secures the ABL facility on a first priority basis (which is typically inventory, accounts receivable, deposit accounts, securities accounts, certain loans intercorporate and related assets), which second priority liens are subject to the liens on those assets securing the obligations under the Term Loan Facility and subordinate to the liens on these assets securing the ABL Facility.
The Company expects to use the net proceeds of this offering to repay a portion of the amount outstanding under the term loan facility and to pay related fees and expenses.
This press release is not an offer to sell or a solicitation of an offer to buy the Notes, and there will be no sale of the Notes in any state or jurisdiction in which any such offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, if any, will be made only under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States based on Regulation S of the Securities Act. . The Notes have not been and should not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or registration. an applicable exemption from the registration requirements.
Forterra is a leading manufacturer of pipe and water and drainage products in the United States and Eastern Canada for a variety of water-related infrastructure applications, including transportation systems, distribution, drainage and storm water. Based in Irving, TX, Forterra’s breadth and scale of products make it a preferred supplier of pipe and water related products, serving a wide variety of customers including contractors, distributors and municipalities. . For more information on Forterra, visit http://forterrabp.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook” and “project” and other similar expressions which predict or indicate future events or trends or which are not statements of historical fact. Forward-looking statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be precise indications of when or by which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s belief or reasonable expectations regarding future events, and are subject to risks and uncertainties, many of which are independent of the will of the Company, which could cause actual performance or results to differ materially from the belief or expectations expressed or suggested by forward-looking statements. Forward-looking statements speak only as of the date on which they are made and the Company assumes no obligation to update any forward-looking statements to reflect future events, developments or otherwise, except as required by applicable law. . Investors are referred to the documents filed by the Company with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for additional information regarding risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement.
Vice-President – Treasury and Investor Relations