Olin Corp. announced that it has notified bondholders that it intends to redeem all $185 million of its outstanding 10 percent senior notes due October 15, 2025.
The notes are expected to be redeemed on May 14, 2021 at a redemption price in cash of 105 percent of the principal amount of the notes, representing an aggregate premium of approximately $9.3 million. The notes were issued in connection with its 2015 Dow Chlorine Products acquisition. Olin expects to fund the redemption using $195 million of cash generated from operations.
“The $185 million redemption of the high-cost bonds reflects our strategy to utilize excess cash flow to lower our debt levels,” said Scott Sutton, president and CEO. “We expect that the redemption will reduce annual interest expense by approximately $19 million.”
Olin Corp. is a manufacturer and distributor of chemical products and also owns the Winchester ammunition business.
Photo courtesy Olin Corp.
