Olin Corporation announced yesterday that it has notified bondholders that it intends to redeem $600 million of outstanding 9.75% senior notes due October 15, 2023. The notes are expected to be redeemed on October 15, 2020 at a redemption price in cash of 102.438% of the principal amount of the notes (representing an aggregate redemption premium of approximately $14.6 million). The notes were issued in connection with the 2015 Dow Chlorine Products acquisition. Olin expects to fund the redemption using its $500 million senior delayed-draw term loan and approximately $114.6 million of cash generated from operations.   

 

"The use of cash to redeem $100 million of the high-cost bonds reflects improved liquidity driven by actions to reduce working capital and capital spending in 2020 and our second half 2020 operating results," said Scott Sutton, President and Chief Executive Officer. "We expect that the redemption will reduce annual interest expense by approximately $40 million."

 

The company during the second quarter of 2020 reported net loss of $120.1 million, or $0.76 per diluted share, as against loss of $20.0 million, or $0.12 per diluted share in the same quarter last year. Sales in the second quarter 2020 also dropped to $1,241.2 million as compared to $1,592.9 million in the second quarter 2019.

 

Olin Corporation is a vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.