SACRAMENTO, Calif. (Jan. 12)—GenCorp. Inc. plans to raise $100 million through a private placement of contingent convertible fixed rate subordinated notes with proceeds to reduce debt.
It could raise up to an additional $25 million if one of the initial purchasers exercises an option to purchase more notes. Proceeds from the private placement would be used to repay outstanding debt under its revolving credit facility, prepay payments that would otherwise be required this year under its Term Loan A and for general corporate purposes, the Sacramento-based firm said Jan. 12.
The notes will be convertible into shares of the company's common stock and will mature in 2024.