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Optima Specialty Steel: Restructured

|Includes: Great Elm Capital Corp (GECC)

This is a News Alert from the newly re-launched BDC Credit Reporter regarding acompany on our Watch List.

Optima Specialty Steel: Restructured

April 20, 2017 : "Optima Specialty Steel, Inc. (together with its subsidiaries, collectively the "Company" or "OSS") today announced that it has entered into a Plan Support Agreement (the "Agreement") with Optima Acquisitions, LLC ("OA"), the sole shareholder of OSS. The Agreement contemplates that the Company will emerge from Chapter 11 by the end of July 2017 through a confirmed plan of reorganization that will pay all allowed claims of creditors in full, in cash. The proposed plan will be funded by a $200 million cash contribution by OA plus debt financing of approximately $140 million. The debt financing process will be conducted by Miller Buckfire, the Company's investment banker, on a timeline consistent with the planned emergence from Chapter 11. The proposed plan will also reduce the Company's long-term debt, significantly deleverage its balance sheet, and position the Company for sustainable profitability and allow it to strategically position itself for future opportunities.

"With the additional $200 million equity commitment provided by OA, the planned reorganization of the Company will provide a strong and sustainable capital structure for OSS and maximize value for all stakeholders," said Michael Correra, Chief Restructuring Officer of OSS.

Motti Korf, Chief Executive Officer of OSS and a shareholder of OA added, "OA is committed to see the Company emerge from Chapter 11 stronger, with enhanced financial flexibility, and poised to capitalize on new opportunities and create value for its stakeholders. I particularly want to thank our employees, customers, vendors, creditors and professional advisers for their continued support throughout this process."

Source: Business Wire


BDC Exposure At 12-31-2016


Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.