Key Developments For North American Galvanizing & Coatings, Inc.
North American Galvanizing & Coatings, Inc. (NGA.O) (Consolidated Issue listed on NASDAQ Global Market)
North American Galvanizing & Coatings Completes Private Placement
North American Galvanizing & Coatings announced that effective August 21, 2009 the Company completed its previously reported private placement of 10% subordinated notes and warrants to purchase shares of common stock. The Company raised $7.3 million in gross subscription proceeds. The private placement was offered to a group of current large shareholders and a limited number of other accredited investors who had expressed an interest in investing in the Company. The Company placed $7.3 million in principal of 10% subordinated notes and warrants to purchase 1,095,000 shares of common stock. The strike price of the warrants was set at $5.20 per share of common stock.
North American Galvanizing & Coatings, Inc. Announces New Financing
North American Galvanizing & Coatings, Inc. announced that the Board of Directors has approved a new capital and funding structure designed to facilitate the Company's growth strategy. The Company's new capital and funding structure will consist of a combination of an expanded bank facility and a $10 million capital raise through a private placement offering of subordinated notes and warrants. The Company has executed a commitment letter with Wells Fargo Bank, N.A. for a new credit agreement. The new credit agreement, which will replace the existing credit agreement, will provide for a base borrowing amount of $25 million with a higher acquisition funding feature. The new credit agreement is expected to be finalized by the end of July. The Company is also proceeding with a $10 million capital raise through a private placement of subordinated notes and warrants to purchase unregistered shares of the Company's common stock. The private placement will be offered to a group of accredited investors who are current stockholders of record that held at least 10,000 shares of the Company's common stock as of June 12, 2009. The Company must sell $5 million of subordinated notes and warrants in order to close the private placement, and the Company, in its sole discretion, may sell up to an additional $1.5 million of subordinated notes and warrants if the private placement is over subscribed. The private placement is expected to close on or before August 7, 2009.
North American Galvanizing & Coatings, Inc. Announces Opening of Benwood, West Virginia Facility
North American Galvanizing & Coatings, Inc. announced the opening of North American Galvanizing Company's new facility in Benwood, WV. Construction of the facility was completed in May at which time the plant commenced a 'soft start-up'.
North American Galvanizing & Coatings, Inc. Announces New Plant Location
North American Galvanizing & Coatings, Inc. announced that the Company is constructing a new hot-dip galvanizing plant in Benwood, West Virginia. The new operation, which is expected to be online in late April, will utilize a 30 foot kettle and becomes the Company's eleventh hot-dip galvanizing plant. The plant will be constructed in an existing building that the Company has leased. The company projects a $3.5 million expenditure for fixed assets.
North American Galvanizing & Coatings, Inc. Announces Increase In Share Buyback
North American Galvanizing & Coatings, Inc. announced that its Board of Directors has authorized the company to buy back an additional $2 million of its common stock, subject to market conditions.
