Wolverine Tube investors to exchange $38.3 million of 7 3/8% notes for new 10½% notes

By Angela McDaniels

Tacoma, Wash., March 10 - Wolverine Tube, Inc. will issue $38.3 million of new 10½% senior notes due March 28, 2009 in exchange for a like amount of its 7 3/8% senior notes due August 2008 held by Plainfield Special Situations Master Fund Ltd. and the Alpine Group, Inc., according to a company news release.

The investors will also purchase 10,000 shares of the company's 8½% series B preferred stock for $1,000 a share. The preferreds are convertible into common stock at $1.10 per share.

Plainfield and Alpine currently own 54,494 shares of the preferred stock, which are convertible into 55% of Wolverine Tube's common stock on a fully diluted basis.

Wolverine Tube said it expects to close on the commitments by March 28.

"The capital commitments made by Plainfield and Alpine, together with existing cash and credit sources, are adequate to comfortably address Wolverine's operational and debt repayment requirements for 2008. Anticipated positive cash flows from operations and other actions are expected to address further liquidity and investment needs for 2009 and beyond," chief financial officer David A. Owen said in the release.

In February 2007, Plainfield and Alpine agreed to invest up to $75 million in the company through purchasing new convertible preferred equity and providing a standby commitment to a common stock rights offering.

Wolverine Tube provides copper and copper alloy tubes, fabricated products and metal joining products. The company is based in Huntsville, Ala.

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