March 22, 2010 (FinancialWire) — GenCorp Inc. (NYSE: GY) said it has executed an amendment to its $280.0 million senior credit facility.

The amendment, among other things, permits the company to repurchase or refinance its outstanding convertible subordinated notes and senior subordinated notes, subject to certain conditions.

It also permits GenCorp to incur additional senior unsecured or subordinated indebtedness, subject to specified limits and other conditions; provides more flexible terms surrounding the leverage ratio compliance; and permits the company to conduct a rescission offer, using stock and/or cash up to $15 million, with respect to certain units issued under the GenCorp Retirement Savings Plan.

GenCorp said the amendment reduces its revolving credit facility capacity from $80 million to $65 million and the letter of credit subfacility capacity from $125 million to $100 million.

In addition, the interest rate on LIBOR rate borrowings is LIBOR plus 325 basis points, an increase of 100 basis points, and the letter of credit subfacility commitment fee has been similarly amended.

On March 18, 2010, the company also entered into an agreement with certain holders to repurchase $22.5 million principal amount of its 9 1/2% senior subordinated notes at 102% of par, plus accrued and unpaid interest, and $14.3 million principal amount of its 2 1/4% convertible subordinated debentures at 93% of par, plus accrued and unpaid interest.

GenCorp said it anticipates that it will retire the repurchased securities. The company repurchased the debt using a portion of the net proceeds of its 4 1/16% convertible subordinated debentures issued in December 2009.

California-based GenCorp is a 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.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.