Accuride Corporation Completes Acquisition
of Transportation Technologies Industries, Inc.
and $950 Million in Related Refinancing Transactions
Combined Company Expects to Become One of
the Predominant Suppliers to the Heavy/Medium
Commercial Vehicle Industry
EVANSVILLE, Ind. – January 31,
2005 – Accuride Corporation,
North America’s largest manufacturer and
supplier of wheels for heavy/medium trucks and
commercial trailers, today announced that it
has completed its acquisition of Transportation
Technologies Industries, Inc. (TTI), one of
the largest North American manufacturers of
truck components for the heavy and medium-duty
trucking industry. The common stock of Accuride
is privately held with Kohlberg Kravis Roberts
& Co. (KKR) being the majority shareholder.
The combined company will offer the trucking
industry a one-stop component sourcing solution
and expects to become one of the largest suppliers
to the heavy/medium commercial vehicle industry.
Terry Keating, Accuride’s current President
and Chief Executive Officer (CEO), will serve
as President and CEO of the combined company,
which is headquartered in Evansville, Indiana.
Accuride also announced the completion of the
amendment and restatement of its senior secured
bank credit agreement. As part of the amendment,
the company refinanced substantially all of
its existing bank facilities. Citigroup Global
Markets Inc. and Lehman Brothers Inc. jointly
arranged for the new five-year $125 million
revolving credit facility and the new seven-year
$550 million term loan facility. UBS Securities
LLC was the documentation agent.
In addition, Accuride announced today that
it has successfully completed the sale of $275
million in aggregate principal amount of its
8 1/2% Senior Subordinated Notes due 2015 in
a private placement transaction lead by Lehman
Brothers, Inc., Citigroup Global Markets, Inc.
and UBS Securities LLC.
Accuride used the net proceeds of the offering,
together with proceeds of approximately $550
million from the new senior credit facilities,
and cash on hand, to (i) repay substantially
all existing senior secured indebtedness of
Accuride and TTI, including accrued interest
and redemption premiums, (ii) discharge all
of Accuride’s outstanding 9 1/4% senior
subordinated notes due 2008, including accrued
interest and a redemption premium, (iii) discharge
all of TTI’s outstanding 12 1/2% senior
subordinated notes due 2010, including accrued
interest and a redemption premium and (iv) the
payment of fees and expenses related to the
issuance of the new notes, the redemption and
discharge of Accuride’s and TTI’s
senior subordinated notes and premiums associated
with the repayment of each of Accuride’s
and TTI’s existing credit facilities.
Accuride Corporation is one
of the largest and most diversified manufacturers
and suppliers of commercial vehicle components
in North America. Accuride’s products
include commercial vehicle wheels, wheel-end
components and assemblies, truck body and chassis
parts, seating assemblies and other commercial
vehicle components. Accuride’s products
are marketed under its brand names, which include
Accuride, Gunite, Brillion, Imperial, Bostrom,
and Fabco. For more information, visit Accuride’s
website at http://www.accuridecorp.com.
Kohlberg, Kravis Roberts & Co.
is one of world’s oldest and most experienced
private equity firms specializing in management
buyouts, with offices in New York, Menlo Park,
California, and London, England. For more information,
visit http://www.kkr.com.
Statements contained in this
news release that are not purely historical
are forward-looking statements within the meaning
of the Private Securities Litigation Reform
Act of 1995, including statements regarding
the Company's expectations, hopes, beliefs and
intentions on strategies regarding the future
and statements related to the effect of the
TTI acquisition on Accuride’s future results.
It is important to note that the Company's actual
future results could differ materially from
those projected in such forward-looking statements
because of a number of factors, including but
not limited to, the ability to successfully
integrate the above described acquisition, market
demand in the commercial vehicle industry, general
economic, business and financing conditions,
labor relations, governmental action, competitor
pricing activity, expense volatility and other
risks detailed from time to time in the Company’s
Securities and Exchange Commission filings.
Accuride assumes no obligation to update the
information included in this release.
This press release shall not
constitute an offer to sell or the solicitation
of an offer to buy the new notes. The new notes
have not been registered under the Securities
Act of 1933, as amended, or applicable state
securities laws, and unless so registered, may
not be offered or sold in the United States
except pursuant to an exemption from the registration
requirements of the Securities Act and applicable
state securities laws.
Contact:
Eva Schmitz Douglas
Phone: (812) 962-5011
Cell: (812) 431-7177
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