NOVI, Mich. (May 28, 2010)—Cooper-Standard Holdings Inc. and its applicable subsidiaries have emerged from Chapter 11 bankruptcy protection after 10 months.
“The company has emerged with an exceptionally strong balance sheet that will enable us to maintain our leadership position and grow in the industry,” said James S. McElya, chairman and CEO of Cooper-Standard.
As previously announced, the company raised exit financing proceeds from a $450 million offering of unsecured 8.5 percent senior notes due 2018.
The new senior notes were originally issued on May 11 by CSA Escrow Corp., which, in connection with the company's emergence from bankruptcy protection, has been merged into Cooper-Standard Automotive Inc., and the proceeds from the notes offering have been released from escrow.
The firm also raised proceeds from a previously announced $355 million equity rights offering.
Cooper-Standard also entered into a $125 million asset-based working capital facility with Bank of America N.A., as agent, Deutsche Bank Trust Co. Americas, as syndication agent, and Bank of America Securities L.L.C., Deutsche Bank Securities Inc., UBS Securities L.L.C. and Barclays Capital as joint lead arrangers and bookrunners.
The company's balance sheet has been significantly deleveraged as a result of the bankruptcy cases. Its $175 million debtor-in-possession financing facility and about $658.4 million of claims under its prepetition credit facility have been paid in full in cash.
The firm's funded debt balance is now about $480 million, a reduction of more than $650 million from prepetition levels.
Cooper-Standard's Board of Directors has been reconstituted pursuant to the plan. The board of directors includes returning members James McElya, Stephen A. Van Oss and Kenneth L. Way, and new members Glenn R. August, Orlando A. Bustos, Larry Jutte and David J. Mastrocola.
Canadian subsidiary, Cooper-Standard Automotive Canada Limited, has also emerged from bankruptcy protection in Canada.