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EX-99.1 - EX-99.1 - HEXCEL CORP /DE/ | a12-13274_1ex99d1.htm |
8-K - 8-K - HEXCEL CORP /DE/ | a12-13274_18k.htm |
Exhibit 99.2
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News Release
Hexcel Corporation, 281 Tresser Boulevard, Stamford, CT 06901 (203) 969-0666
HEXCEL ANNOUNCES PLAN TO CALL REMAINING SENIOR SUBORDINATED NOTES
STAMFORD, CT. May 29, 2012 Hexcel Corporation (NYSE: HXL) announced that it plans to redeem its remaining $73.5 million 6.75% senior subordinated notes on June 25, 2012 at a call premium of 1.125%. The senior subordinated notes are due on February 1, 2015. The redemption and related costs will be funded solely from a $75 million add-on to Hexcels revolving loan facility that was just completed, increasing the $285 million facility to $360 million. The facility matures in July 2015.
The total transaction costs, including the 1.125% call premium, bank fees and related expenses, will be almost $1.5 million. Hexcel expects interest expense will decrease in the first year by nearly $3 million. Hexcel will accelerate the unamortized financing costs related to the notes and expense the call premium incurring a pretax charge of $1.1 million (after tax of $0.01 per diluted share) in the second quarter of 2012.
Additionally, the Company entered into interest rate hedges that expire March 2014 to swap the floating LIBOR on the $75 million revolver increase for a fixed rate of 0.67%. As a result, the interest rate for the additional revolver loan will be 2.67% through March 2014.
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Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications.
Contact Information |
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Michael Bacal |
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(203) 352-6826 |
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michael.bacal@hexcel.com |
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