New York, Sept. 18 - Exide Technologies said it completed a $50 million sale of common stock to Tontine Capital Partners, LP and affiliates and Legg Mason Investment Trust, Inc. in a private placement.
The Alpharetta, Ga., maker of lead-acid batteries sold 14,285,714 shares at $3.50 each to the two investors.
In addition, Exide sold 10,928,730 shares to existing stockholders in a rights offering and a further 10,499,841 shares to Tontine, Legg Mason and Arklow Capital, LLC under their backstop commitment for the rights offering. The rights offering totaled $75 million and expired on Sept. 14.
Under the rights offering, stockholders, excluding Tontine and Arklow, could subscribe for additional shares at the rate of 0.85753 shares for each share they owned at a price of $3.50 each. The price was set as a 20% discount to the trading price for the 30 trading days ended July 6.
Proceeds from the stock sales will be used to provide additional liquidity for capital expenditures ($46.0 million), restructuring costs ($30.5 million), general corporate purposes ($28.7 million) and working capital ($12.4 million).
| Issuer: | Exide Technologies
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| Issue: | Common stock
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| Amount: | $50 million
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| Shares: | 14,285,714
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| Price: | $3.50
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| Investors: | Tontine Capital Partners, LP; Legg Mason Investment Trust, Inc.
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| Announcement date: | June 28
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| Pricing date: | July 6
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| Settlement date: | Sept. 18
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| Stock symbol: | Nasdaq: XIDE
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| Stock price: | $3.59 at close, Sept. 18; $4.60 at close July 6
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