Ampco-Pittsburgh Considers Rights Offering
By Metal Center News Staff
on Jun 3, 2020
Ampco-Pittsburgh Corp. is contemplating a rights offering that would, when initiated, involve the issuance to its shareholders of a dividend of rights and potential over-subscription rights to purchase shares of its capital stock and potentially other securities. The corporation is considering offering any or all of the following securities: common stock, dividend yielding preferred stock, warrants and/or dividend yielding convertible preferred stock.
The offering of the securities would be made pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission.
“We are exploring a potential rights offering to raise additional capital to accelerate our restructuring efforts, improve overall liquidity, and reduce indebtedness. If we proceed with this offering, our shareholders will have the first opportunity to purchase additional securities to maintain or increase their current percentage ownership in our company,” said Brett McBrayer, Ampco-Pittsburgh’s CEO.
The Corporation has engaged RHK Capital to gauge feedback and interest for the contemplated rights offering from institutional accredited investors and qualified institutional buyers.
Ampco-Pittsburgh Corporation manufactures and sells highly engineered, high-performance specialty metal products and customized equipment utilized by industry throughout the world. Through its operating subsidiary, Union Electric Steel Corporation, it is a leading producer of forged and cast rolls for the global steel and aluminum industry. It also manufactures open-die forged products which principally are sold to customers in the steel distribution market, oil and gas industry and the aluminum and plastic extrusion industries.