Olin Corporation announced that it has notified bondholders that it intends to redeem all of the $120 million of its outstanding 9.75 percent senior notes due October 15, 2023.
The notes are expected to be redeemed on January 15, 2021 at a redemption price in cash of 102.438 percent of the principal amount of the notes (representing an aggregate redemption premium of approximately $3.0 million). The notes were issued in connection with the 2015 Dow Chlorine Products acquisition. Olin expects to fund the redemption using $123.0 million of cash generated from operations.
“The $120 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 chief executive officer. “We expect that the redemption will reduce annual interest expense by approximately $12 million.”
Olin is a manufacturer of chemical products and owner of Winchester, the manufacturer of ammunition.
Photo courtesy Olin Corporation
