Real Industry, Inc. (NASDAQ: RELY) (“Real Industry” or the “Company”) today announced that its wholly owned subsidiary, Real Alloy, is restarting its UBC recycling operation at its Morgantown, Kentucky facility as a result of increasing customer demand and a new contract. The UBC recycling operation has been idle since December 2015. On an annualized basis, Real Alloy expects to process approximately 50,000 tonnes at this facility, which represents more than 6% of Real Alloy North America’s total annual volume.
Mr. Terry Hogan, President of Real Alloy, stated, “We are excited about restarting the UBC recycling operation at Morgantown. The restart will bring approximately 30 people back to work at the facility and will result in higher equipment utilization with the higher production levels. We are currently ramping up the equipment and expect to be delivering the targeted volumes by the beginning of October 2017.”
Company Provides Update on Corporate Refinancing
The Company is also pleased to announce that it has retained Jefferies LLC, a global investment banking firm, to assist in refinancing Real Alloy’s $305.0 million of senior secured 10.0% notes (“Senior Secured Notes”) coming due in January 2019.
Mr. Kyle Ross, President and Chief Executive Officer of Real Industry, stated, “Over the past few weeks, our senior management team has engaged in preliminary discussions with current and prospective investors regarding a potential refinancing of our Senior Secured Notes. The leveraged finance market is in a strong position, and the Company has engaged a team at Jefferies, with whom we have a long-standing relationship, to lead this process.”
About Real Industry, Inc.
Real Industry is a holding company that seeks to create a sustainably profitable enterprise by allocating capital to improve the value of its existing businesses and to execute accretive acquisitions with a disciplined approach to value and structure. Our business strategy also seeks to take advantage of Real Industry’s U.S. federal net operating loss tax carryforwards of $916 million. For more information about Real Industry, visit its corporate website at www.realindustryinc.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements, which are based on our current expectations, estimates, and projections about the Company’s and its subsidiaries’ businesses and prospects, as well as management’s beliefs, and certain assumptions made by management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “should,” “will” and variations of these words are intended to identify forward-looking statements. Such statements speak only as of the date hereof and are subject to change. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason. These statements include, but are not limited to, statements about: our expectations and preparations for future financial trends and performance of our business and our strategy in future periods; our strategic initiatives including future acquisitions, dispositions and opportunistic investments; our plans to refinance our indebtedness; and any statements or assumptions underlying any of the foregoing and similar statements. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Accordingly, actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such differences include, but are not limited to, changes in demand for recycled aluminum; our ability to deliver on customer contracts; our ability to refinance our indebtedness; the high leverage associated with, Real Alloy’s indebtedness, and compliance with the terms of the indebtedness, including the restrictive covenants that constrain the operation of its business and the businesses of our subsidiaries; that general economic conditions may be worse than expected; that competition may increase significantly; as well as those risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Real Industry, Inc.’s Forms 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 10, 2017 and August 8, 2017 and Form 10-K filed with the SEC on March 13, 2017, and similar disclosures in subsequent reports filed with the SEC, which are available on our website at www.realindustryinc.com and on the SEC website at https://www.sec.gov.