FARMINGTON HILLS, Mich., Aug. 4, 2016 /PRNewswire/ -- Innovation Ventures, LLC (the "Company"), the leading producer and distributor of 5-hour ENERGY® shots, announced that it expects to enter into a new $525.0 million senior secured credit facility (the "Credit Facilities"). The Credit Facilities are expected to be comprised of a $25.0 million revolving facility maturing in 2020 and a $500.0 million First-Lien Term Loan Facility maturing in 2021. The Company's obligations under the Credit Facilities will be guaranteed by certain of our affiliates and substantially all of our wholly owned domestic subsidiaries, and secured by substantially all the assets of the Company and the guarantors. In addition, the Company intends to commence an offering of a series of unsecured notes that will mature in 2021.
The Company intends to use a portion of the proceeds from the sale of the unsecured notes and the funding of the Credit Facilities to (i) repurchase any and all of the Company's outstanding 9½% Senior Secured Notes due 2019 (the "Existing Notes") in a tender offer and to pay any related fees and expenses, including tender premiums; (ii) fund the redemption of any Existing Notes not otherwise purchased in the tender offer, and to pay any related fees and expenses, including call premiums; and (iii) fund the redemption of certain equity interests of certain owners. Simultaneously, the Company expects to enter into a sale transaction whereby a majority of the current ownership of the Company would be indirectly acquired by affiliates of Renew Group Private Limited ("Renew Group") led by CEO Ravi Sajwan (the "Transaction"). After consummation of the Transaction, Renew Group will own a majority of the Company, with existing equity holders, including Founder and CEO, Manoj Bhargava, retaining a substantial minority. Day-to-day operational management control will remain the same, with Mr. Bhargava remaining as the CEO of the Company and serving on Renew Group's Board. The closing of the Transaction is subject to customary closing conditions. The terms of the Transaction are not complete and are subject to revision.
Commenting on the Transaction, Mr. Bhargava said "we fully expect to continue to focus on the U.S. and Canadian markets as we have in the past. We are looking forward to working with Ravi and Renew Group on a go forward basis."
This press release shall not constitute an offer to purchase or a notice of redemption of the Existing Notes. Any such offer to purchase or redemption notice shall be made only pursuant to and in accordance with the applicable tender offer documents or the Confidential Offering Memorandum and indenture for the Existing Notes, as applicable.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements.
All information set forth in this press release is as of August 4, 2016. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. Risk factors and uncertainties that may cause actual results to differ materially from expected results include, among others, our ability to successfully complete the Transaction.
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SOURCE Innovation Ventures, LLC