horsehead holding corp (ZINC) Key Developments
Horsehead Holding Corp. Reports Production Results for the Third Quarter of 2014
Oct 1 14
Horsehead Holding Corp. issued an update on operations at its Mooresboro, North Carolina zinc production facility. The company reported that the facility produced approximately 4,300 tons of zinc metal in the third quarter of 2014, compared to 3,400 tons in the second quarter, as the previously announced temporary outage at the beginning of the third quarter limited production during the first half of the quarter.
Horsehead Holding Corp. Enters into the Fifth Amendment to the Revolving Credit and Security Agreement
Sep 22 14
On September 22, 2014, the Horsehead Holding Corp. entered into the Fifth Amendment to the Revolving Credit and Security Agreement, by and among Horsehead Corporation, Horsehead Metal Products Inc. and Horsehead Zinc Powders, LLC, the company, as guarantor, Chestnut Ridge Railroad Corp., as guarantor, the financial institutions party thereto and PNC Bank, National Association, as agent for the lenders. The Fifth Amendment amended certain provisions of the Credit Agreement including the definition of eligible receivables with respect to a certain customer for a stated time period.
Horsehead Holding Mulls Acquisitions
Aug 13 14
Horsehead Holding Corp. (NasdaqGS:ZINC) is looking for acquisitions. Horsehead Holding Corp. has raised $50 million through two separate but simultaneous debt offerings, and earmarked the capital for possible acquisitions. Ali Alavi, Senior Vice President of Corporate Affairs at Horsehead Holding Corp. said, "What we're looking to do is maintain a certain level of liquidity for potential strategic alternatives and general corporate purposes. We haven't ruled anything out and if there are opportunities in the nickel business to expand Inmetco, we're hoping to look at them."
Horsehead Holding Corp. Reports Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Earnings Guidance for the Year 2014
Aug 6 14
Horsehead Holding Corp. reported consolidated earnings and production results for the second quarter and six months ended June 30, 2014. For the quarter, the company’s net sales were $126.265 million against $110.456 million a year ago. Loss from operations was $4.012 million against $1.566 million a year ago. Loss before taxes was $6.729 million compared to $1.566 million a year ago. Net loss was $5.120 million, or $0.10 per diluted share compared to $0.828 million or $0.02 per diluted share a year ago. Adjusted EBITDA was $9.058 million compared to $6.586 million a year ago. Cash provided by operating activities was $19.4 million, as decreased accounts receivable and inventory was partially offset with a reduction in accounts payable and accrued expenses during the quarter. Capital spending was $34.7 million for the quarter.
For the six months, the company’s net sales were $236.329 million against $228.718 million a year ago. Loss from operations was $4.839 million against income from operations of $2.740 million a year ago. Loss before taxes was $5.606 million compared to income before taxes of $3.092 million a year ago. Net loss was $4.391 million, or $0.09 per diluted share compared to net income of $2 million, or $0.05 per diluted share a year ago. Adjusted EBITDA was $11.363 million compared to $18.966 million a year ago.
For the quarter, the company reported Zinc production of 21,676 tons against 39,236 tons a year ago.
For the six months, the company reported Zinc production of 56,185 tons against 80,137 tons a year ago.
At full zinc production, 2014 annualized EBITDA would be expected to increase by approximately $25 to $30 million for each 10 cent increase in the price of zinc.
Horsehead Holding Corp. Prices Offering of New 9% Senior Notes Due 2017
Jul 25 14
On July 24, 2014, Horsehead Holding Corp. priced an offering of $40,000,000 aggregate principal amount of its new 9% senior notes due 2017 and an offering of an additional $10,000,000 aggregate principal amount of its existing 10.50% senior secured notes due 2017, in private placements not registered under the securities act of 1933, as amended. The unsecured notes and the secured notes were priced at 100% and 113% of their principal amount, respectively. The company anticipates that the closing of the private placements will take place on or about July 29, 2014, subject to customary closing conditions. The notes mature on June 1, 2017. The unsecured notes are a new issue of notes that will pay interest semiannually at a rate of 9% per annum. The secured notes will be issued as additional notes under the indenture dated July 26, 2012 and will pay interest semiannually at a rate of 10.50% per annum. Upon the closing of the offering of the secured notes, there will be an aggregate of $205 million of secured notes outstanding. The notes and related guarantees were offered only to investors who were both accredited investors and qualified institutional buyers in reliance on the exemption from registration under section 4(a)(2) of the securities act and rule 506 of regulation d promulgated thereunder. The notes and the related guarantees have not been, and will not be, registered under the securities act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the securities act and applicable state securities and foreign securities laws.