General Chemical Group Inc. plans to raise US$ 10 million of equity capital through a rights offering, and said it reached agreements with lenders to amend the terms of its revolving credit facility.
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General Chemical Group Inc. plans to raise US$ 10 million of equity capital through a rights offering, and said it reached agreements with lenders to amend the terms of its revolving credit facility. In a press release on 22 March this year, the US soda ash and calcium chloride producer said shareholders will receive subscription rights to purchase additional common shares. General Chemical expects to file a registration statement with the Securities and Exchange Commission relating to the rights and common stock before the end of March, this year. The company said it will provide additional information regarding the rights offering, including the subscription price, subscription ratio, the record date for the shareholders entitled to receive subscription rights and the expiration date of the rights, after the registration date is declared effective by the SEC. General Chemical said the amended financial covenants and other terms of its revolving credit facility will provide it with more flexibility in 2001 and 2002. The agreement provides for maximum borrowing of US$ 70 million under the credit facility during 2001 and 2002. As of 31 December, US$ 49.3 million was outstanding under the credit facility.