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| GrafTech's First Quarter 2010 Results |
GrafTech International Ltd. /quotes/comstock/13*!gti/quotes/nls/gti (GTI 16.76, -0.35, -2.05%) today announced that it has signed Agreements to acquire the remaining interest in Seadrift Coke L.P. (Seadrift), the world's second largest petroleum-based needle coke producer, and all of the equity interest in C/G Electrodes LLC (C/G), a US-based graphite electrode producer, for an aggregate of $692 million(1) (net of $74 million allocable to GrafTech for its existing interests in Seadrift). GrafTech also announced today the successful completion of the refinancing of its principal revolving credit facility and reported financial results for the first quarter ended March 31, 2010.
Seadrift, C/G Transaction Highlights
Under the Agreements, GrafTech will become owner of 100 percent of Seadrift, of which it already owns 18.9 percent, and 100 percent of C/G. Current C/G and Seadrift owners (excluding GrafTech's interest) will receive 24 million shares of GrafTech common stock, $233 million in cash and $200 million in non-interest bearing five-year Senior Subordinated Notes, which have a discounted fair market value of $136 million(2). The transactions are expected to be accretive to earnings in the first full year following closings, including the benefits of synergies but prior to purchase price accounting adjustments. The two acquisitions are expected to close independently after customary regulatory clearances.
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