Global Brass gets ¼% penalty due to late exchange offer for 9½% notes

By Toni Weeks

San Luis Obispo, Calif., Aug. 13 - Global Brass and Copper Holdings, Inc. said that the registration statement for its required exchange offer for its 9½% senior secured notes due June 1, 2019 was not effective as of June 1, and the company must subsequently pay a default rate of ¼% per year in addition to the notes' 9½% coupon.

According to a 10-Q filing with the Securities and Exchange Commission, the company was required to effect a registered offer to issue registered new notes with substantially the same terms in exchange for the 9½% notes, which were issued in a private offering on June 1, 2012. Global Brass filed a form S-4 registration statement under the Securities Act of 1933 on June 10, but because the statement did not become effective within 365 days after the issue date, the company must pay additional interest of ¼% per year for each 90 days it is in default, up to a maximum of ½% per year.

The company also said it submitted an amended registration statement on July 24 with respect to its proposed exchange offer.

The Schaumburg, Ill., company is a converter, fabricator, distributor and processor of specialized copper and brass products.

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