CEDC Announces Offering of Senior Secured Notes to Repay Short-Term Credit Facilities

Dec 06, 2010, 06:01 ET from Central European Distribution Corporation

MT. LAUREL, N.J., Dec. 6, 2010 /PRNewswire-FirstCall/ -- Central European Distribution Corporation (Nasdaq: CEDC) ("CEDC" or the "Company") today announced that it plans to offer, through a wholly-owned finance subsidiary of the Company (the "Issuer"), euro 50,000,000 aggregate principal amount of its 8.875% euro-denominated senior secured notes due 2016 (the "Notes").  The Company intends to use the net proceeds from the Notes offering to repay existing short-term debt under bank credit facilities of an operating subsidiary of the Company.

The Notes are additional notes and will constitute part of the same class as the existing euro 380,000,000 of 8.875% senior secured notes due 2016 issued by the Issuer on December 2, 2009 and will have the same terms as the existing notes.

The Notes will be offered to institutional investors in an offering that will be exempt from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act").  The Notes have not been and will not be registered under the Securities Act or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement does not constitute an offer to sell or a solicitation of an offer to purchase any securities, and shall not constitute an offer, solicitation or sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. There will be no public offering of the securities in Poland within the meaning of the Polish Act on Public Offerings and Conditions Governing the Introduction of Financial Instruments to Organized Trading System and Public Companies of July 29, 2005.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of CEDC to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. CEDC undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties included in CEDC's reports with the SEC.

SOURCE Central European Distribution Corporation