Horsehead Holding secures project financing, ends third quarter with $288 million of cash

By Lisa Kerner

Charlotte, N.C., Nov. 5 - Horsehead Holding Corp. closed on a $175 million senior secured notes offering on in July to provide additional financing for the construction of a new zinc plant project in North Carolina.

In addition, the company entered into an agreement for about $20 million of lower-cost export credit financing for the project, according to the company's third-quarter earnings news release.

Horsehead reported cash on hand at Sept. 30 of about $288 million, which included the $171.8 million of proceeds from the July senior secured notes.

The company had $44.2 million of unused availability under its revolving credit facility. The export credit financing arrangement is expected to add an additional $20 million of availability.

Capital spending was $46.5 million for the quarter and $107 million for the nine months ended Sept. 30.

Net sales for the current quarter were $109.2 million, compared to $108.2 million for the third quarter of 2011.

Adjusted EBITDA was $10.3 million for the quarter, compared to $6.3 million for the same quarter last year. Adjusted EBITDA was $42.8 million for the 12-months ended Sept. 30.

Pittsburgh-based Horsehead Holding is the parent company of Horsehead Corp., which produces specialty zinc and zinc-based products and recycles electric arc furnace dust.

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