SOURCE: Imperial Capital

Imperial Capital

January 05, 2010 04:45 ET

Imperial Capital Closes $200 Million Convertible Subordinated Debenture Offering for GenCorp Inc.

LOS ANGELES, CA--(Marketwire - January 5, 2010) - Imperial Capital announced today the closing of a $200 million convertible subordinated debentures offering for GenCorp Inc. ("GenCorp" or the "Company") (NYSE: GY), a leading technology-based manufacturer of aerospace and defense products and systems. The Company sold $200 million of 4.0625% Convertible Subordinated Debentures due 2039 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). This amount includes the full exercise of the option to purchase an additional $50 million aggregate principal amount of debentures that GenCorp granted to the initial purchasers of the debentures solely to cover over-allotments, if any. Imperial Capital, LLC acted as co-manager with Morgan Stanley as lead book-running manager and Lazard Capital Markets also as co-manager.

"This transaction demonstrates the depth of Imperial Capital's capital markets and sales and trading platform," said Jason Reese, Chairman and Chief Executive Officer of Imperial Capital. Chris Shepard, Executive Vice President, Co-Head of Investment Banking and Head of Capital Markets at Imperial Capital, added, "We can efficiently and effectively raise capital across the entire corporate capital structure through our sophisticated institutional sales and trading team, which covers over 1,200 institutional accounts."

The debentures may be converted into shares of GenCorp common stock initially at a conversion rate of 111.0926 shares of common stock per $1,000 principal amount of debentures (equivalent to a conversion price of approximately $9.00 per share of common stock). GenCorp intends to use the net proceeds from the offering to refinance all or a portion of its 4% Contingent Convertible Subordinated Notes due 2024 and a portion of its 9 1/2% Senior Subordinated Notes due 2013.

The debentures and the shares of GenCorp's common stock issuable upon conversion of the debentures have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

About GenCorp Inc.

GenCorp is a leading technology-based manufacturer of aerospace and defense products and systems with a real estate segment that includes activities related to the entitlement, sale and leasing of the Company's excess real estate assets. Additional information about the Company can be obtained by visiting the Company's web site at http://www.GenCorp.com.

About Imperial Capital, LLC

Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Boston, Houston and Minneapolis. The firm currently employs over 170 professionals and offers a wide range of proprietary products and services to institutional investors, middle market companies, and private equity firms. Imperial Capital provides institutional clients research and sales and trading of high yield and distressed debt securities, bank debt, convertible bonds, preferred stocks, and equities. The firm provides middle market companies and financial sponsors with capital markets, merger and acquisitions, capital structure, restructuring and recapitalization advisory services. More information about Imperial Capital can be found at www.imperialcapital.com.

Contact Information

  • For more information regarding Imperial Capital or this transaction, please
    contact:

    Press:
    Anna Halloran Jacob
    Imperial Capital, LLC
    (310) 246-3675
    ahalloranjacob@imperialcapital.com