September 07, 2008

Metalico secures USD 100 million private placement

Metalico Inc a rapidly growing scrap metal recycler and lead fabricator announced it has entered into a definitive purchase agreement with institutional accredited investors to raise USD 100 million of gross proceeds in a private placement of 7% notes which are convertible into shares of Metalico's common stock and warrants which are exercisable for shares of Metalico's common stock.

In connection with the private placement, Metalico will issue 7% senior convertible notes in the aggregate principal amount of USD 100 million, which notes will be convertible into shares of Metalico's common stock at an initial conversion price of USD 14.00 per share. The notes will mature in April 2028 and are subject to certain redemption, repurchase and anti dilution rights. In addition, Metalico will issue to the purchasers of the notes a total of 250,000 warrants for shares of Metalico's common stock with a term of six years. The initial exercise price of the warrants will be USD 14.00 per share, subject to adjustment.

The Company intends to use the remaining net proceeds from the offering to fund potential acquisitions and for working capital purposes.
Morgan Joseph & Co Inc acted as placement agent in connection with the placement.