Central European Distribution Corp. (CEDC) said it proposes to offer, through a newly formed wholly-owned unit of the Company, about $870.0 million aggregate principal amount of U.S. dollars and euro-denominated senior secured notes due 2016 in an offering to institutional investors, that will be exempt from registration under the U.S. Securities Act of 1933, as amended.
CEDC stated that it is proposing to offer 9.50 million common shares (or a total of 10.45 million shares if the underwriters in that offering exercise their option to buy additional shares in full) in an underwritten public offering.
Also, the company intends to use the net proceeds from the offering and the concurrent common stock offering to purchase the remaining equity interests in the Russian Alcohol Group from funds managed by Lion Capital LLP, to repay all amounts outstanding under Russian Alcohol's credit facilities, to call for redemption all of its outstanding senior secured notes due 2012 and to repay amounts outstanding under an existing credit facility at one of its operating units.
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