Industrial materials maker Ferro Corp. said Tuesday it has completed an underwritten public offering of $250 million worth of 7.875 percent senior notes due 2018.
The company used a portion of the net proceeds from the notes offering to pay back funds borrowed from its credit facility. It also obtained a new, five-year secured credit facility that replaces the previous credit line.
Ferro said it will use the rest of the proceeds, as well as borrowings from the credit line, to buy back its outstanding 6.50 percent convertible senior notes due 2013. Ferro launched a cash tender offer in July to buy back those notes. The offer expires Aug. 30.
Credit Suisse Securities (USA) LLC is acting as the dealer manager for the tender offer, while Global Bondholder Services Corp. is acting as information agent. If the deal isn't completed, Ferro said it will instead use the proceeds for general corporate purposes.
Ferro shares fell 13 cents to close at $10.09 on Tuesday.