Ferroglobe Redeems All 9.375% Senior Secured Notes Due 2025

TL;DR

**Ferroglobe just paid off its high-interest 2025 notes, boosting its financial strength.**

AI Summary

Ferroglobe PLC announced on February 5, 2024, the full redemption of its remaining 9.375% Senior Secured Notes Due 2025. This means the company has paid off a significant portion of its debt ahead of schedule, specifically notes with a 9.375% interest rate. This action reduces future interest expenses and strengthens the company's financial position, which is positive for shareholders as it indicates improved financial health and potentially higher future profits.

Why It Matters

This debt redemption reduces Ferroglobe's interest expenses and improves its balance sheet, signaling stronger financial health to investors.

Risk Assessment

Risk Level: low — The redemption of high-interest debt generally reduces financial risk for the company.

Analyst Insight

A smart investor would view this as a positive sign of financial deleveraging and improved cash flow, potentially leading to a re-evaluation of the stock's intrinsic value.

Key Numbers

• 9.375% — Interest Rate (The high interest rate of the Senior Secured Notes that were fully redeemed, indicating significant interest expense savings.)
• 2025 — Maturity Year (The original maturity year of the Senior Secured Notes, showing the company paid them off ahead of schedule.)

Key Players & Entities

• Ferroglobe PLC (company) — the registrant announcing the debt redemption
• Marco Levi (person) — Chief Executive Officer (Principal Executive Officer) who signed the filing
• 9.375% (dollar_amount) — interest rate of the Senior Secured Notes
• 2025 (date) — maturity year of the Senior Secured Notes
• February 5, 2024 (date) — date of the press release and filing

Forward-Looking Statements

• Ferroglobe's interest expenses will decrease in future financial reports. (Ferroglobe PLC) — high confidence, target: Q1 2024 earnings report
• The company's debt-to-equity ratio will improve. (Ferroglobe PLC) — high confidence, target: Q1 2024 balance sheet

FAQ

Key Financial Figures

• $147,623,624 — redeem an aggregate principal amount of $147,623,624 of the Notes, the entire amount outstan
• $4,075,027 — and unpaid interest and call premium of $4,075,027, assuming the expected redemption date
• $370 million — uced our adjusted gross debt by roughly $370 million to less than $100 million once this red
• $100 million — bt by roughly $370 million to less than $100 million once this redemption is completed, high
• $32 million — h began in 2023, saves us approximately $32 million in annual interest expense compared to

Filing Documents

• tmb-20240205x6k.htm (6-K) — 35KB
• tmb-20240205x6k001.jpg (GRAPHIC) — 8KB
• 0001558370-24-000771.txt ( ) — 48KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 5, 2024 FERROGLOBE PLC by /s/ Marco Levi Name: Marco Levi Title: Chief Executive Officer (Principal Executive Officer) Ferroglobe Announces the Full Redemption of its Remaining 9.375% Senior Secured Notes Due 2025 LONDON, February 5, 2024 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) ("Ferroglobe", the "Company," or the "Parent"), a leading global producer of silicon metal, silicon-based and manganese-based ferroalloys, announces today that its subsidiary issuers of the 9.375% Senior Secured Notes due 2025 (the "Notes") have given notice of full redemption of such Notes at 102.34375% of the principal amount plus accrued interest. The issuers elect to redeem an aggregate principal amount of $147,623,624 of the Notes, the entire amount outstanding as of the redemption date, plus accrued and unpaid interest and call premium of $4,075,027, assuming the expected redemption date of February 16, 2024. The Notes are being redeemed with cash on the balance sheet. "The elimination of the Senior Secured Notes is a significant milestone for Ferroglobe," said Beatriz Garcia-Cos, Ferroglobe's Chief Financial Officer. "Since the end of 2022, we have reduced our adjusted gross debt by roughly $370 million to less than $100 million once this redemption is completed, highlighting our ability to generate strong free cash flow. Over the past couple of years, a primary focus has been strengthening our balance sheet. The reduction of our debt level and the redemption of these notes indicates success in this effort. The full redemption of the Notes enhances our financial flexibility, enabling the company to implement a capital return policy and provide more attractive avenues for debt financing in the future. The repurchases and redemption of these notes, which bega

Forward-Looking Statements

Forward-Looking Statements This release contains "forward-looking statements" within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "guidance", "intends", "likely", "may", "plan", "potential", "predicts", "seek", "target", "will" and words of similar meaning or the negative thereof. Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe's actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control. Forward-looking financial information and other metrics presented herein represent the Company's goals and are not intended as guidance or projections for the periods referenced herein or any future periods. All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release. INVESTOR CONTACT: Alex Rotonen, CFA Vice President, Investor Relations Email: investor.relations@ferroglobe.com MEDIA CONTACT: Cristina Feliu Roig Executive Director, Communications & Public Affairs Email: corporat

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View this 6-K filing on SEC EDGAR