Exhibit 99.1
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NEWS |
Georgia Gulf Announces Note Holder Forbearances and
Extension of Private Debt Exchange Offers
· Agreements obtained from holders of more than $634 million of the $800 million total principal amount
ATLANTA, GEORGIA — May 13, 2009 — Georgia Gulf Corporation (NYSE: GGC) today announced it has entered into agreements with the holders its 9.5% Senior Notes due 2014 and 10.75% Senior Subordinated Notes due 2016 comprising the requisite percentages thereof to ensure that such indebtedness may not be accelerated under the indentures for such notes prior to June 15, 2009 due to $34.5 million of interest payments due April 15, 2009 under such notes being withheld by the Company, as previously announced. The requisite holders of the Company’s 7.125% Senior Notes due 2013 have provided a similar agreement. These forbearance agreements were entered into with over 84 percent, 79 percent and 53 percent of the holders of the Company’s 2014 senior notes, 2016 senior subordinated notes and 2013 senior notes, respectively. All three of the notes issuances are the subject of previously announced private exchange offers (the “exchange offers”).
Upon expiration of these forbearances on June 15, 2009, an acceleration of indebtedness under any issue of the notes would constitute cross defaults under the Company’s other note issues and its senior secured credit facility, permitting the holders of such debt to accelerate. In the event of any such acceleration, the Company would be required to immediately explore alternatives which could include a potential reorganization or restructuring under the bankruptcy laws.
The Company also announced that it has extended the early participation deadline and the expiration date for the exchange offers until 12:00 midnight, New York City time June 1, 2009. The exchange offers provide for the exchange of the three issues of outstanding notes for $250,000,000 aggregate principal amount of 15% Senior Secured Second Lien Notes due 2014 and 6,922,255 shares of Georgia Gulf common stock.
Each exchange offer will expire at 12:00 midnight, New York City time, on June 1, 2009, unless extended. As of May 13, 2009 approximately $18.8 million, $17.9 million and $150 thousand of the $100 million, $500 million and $200 million in principal amount outstanding of the 2013, 2014 and 2016 notes had been tendered in the exchange offers. Full details of the exchange offers and related consent solicitations are included in the offering memorandum for these exchange offers, copies of which are available to Eligible Holders (as defined below) from Global Bondholder Services Corporation, the information agent, by calling (212) 430-3774 or toll free at (866) 873-7700.