UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 8, 1997
STERLING CHEMICALS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-00059 76-0185186
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization)
</TABLE>
1200 Smith Street, Suite 1900
Houston, Texas 77002-4312
(713) 650-3700
(Address of principal
executive offices
and zip code)
(713) 650-3700
(Registrant's telephone number,
including area code)
STERLING CHEMICALS, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 333-04343-01 76-0502785
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization)
</TABLE>
1200 Smith Street, Suite 1900
Houston, Texas 77002-4312
(713) 650-3700
(Address of principal
executive offices
and zip code)
(713) 650-3700
(Registrant's telephone number,
including area code)
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ITEM 5. OTHER EVENTS
The press release issued on April 8, 1997, by Sterling Chemicals
Holdings, Inc., is filed as Exhibit 99.1 to this Current Report on Form 8-K, and
the contents of such Exhibit are incorporated herein by reference.
ITEM 7. EXHIBITS
Exhibit 99.1 -- Press Release dated April 8, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
STERLING CHEMICALS HOLDINGS, INC.
STERLING CHEMICALS, INC.
(Registrants)
Date: April 9, 1997
By: /s/ Jim P. Wise
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Jim P. Wise
Vice President-Finance and
Chief Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE For Additional Information:
Jim P. Wise (713) 650-3700
STERLING CHEMICALS, INC.
COMPLETES $150,000,000 PRIVATE OFFERING
Houston, Texas, April 8, 1997 . . . . . Sterling Chemicals Holdings,
Inc. (OTC:STXX) announced today that its wholly owned subsidiary, Sterling
Chemicals, Inc. ("Sterling") has completed a private offering in the amount of
$150,000,000 of 11 1/4% Senior Subordinated Notes Due 2007 (the "Notes"). The
Notes are unsecured senior subordinated obligations of Sterling, ranking
subordinate in right of payment to all existing and future senior debt of
Sterling, but pari passu with Sterling's 11 3/4% Senior Subordinated Notes Due
2006 and all future senior subordinated indebtedness.
The net proceeds from the Notes offering were used to prepay amounts
outstanding under Sterling's term loan facilities with certain senior lenders.
The prepayment was made in a manner that significantly reduces required
principal payments over the next four fiscal years. In connection with this
prepayment, Sterling's senior lenders approved amendments to its credit
agreements that provide for somewhat less restrictive financial covenants, and
include a new "Senior Debt Leverage Ratio" covenant. In addition, Sterling
increased its commitments under its revolving credit facility with senior
lenders by $25 million, to $125 million total outstanding. Over 90% of the
senior lenders approved the amendments and the additional $25 million revolving
commitment was over subscribed.
"This refinancing of our long-term debt is an important step toward
improving the financial stability of Sterling, given the cyclical nature of the
styrene and acrylonitrile markets," said Frank
<PAGE>
P. Diassi, Sterling's Chairman of the Board. "By deferring approximately $150
million of scheduled principal payments, Sterling has significantly reduced the
breakeven EBITDA required for fixed charge coverages during the current period
of weak market conditions for these two important petrochemical products," he
said.
"The less restrictive financial covenants in the credit agreements
will allow Sterling to operate more efficiently and with more predictability
during this trough period," said Jim P. Wise, Vice President-Finance and Chief
Financial Officer of Sterling. "Also, the additional $25 million of revolving
credit commitment improves the future liquidity position of Sterling," he said.
As a result of prepaying a portion of the term facilities, Sterling
will incur a pre-tax extraordinary charge of approximately $6 million during the
third fiscal quarter for the write-off of unamortized debt issue costs related
specifically to the senior debt financings that occurred in August 1996 and
January 1997.
Based in Houston, Texas, Sterling Chemicals Holdings, Inc. is a
holding company that, through its operating subsidiaries, manufactures
petrochemicals, pulp chemicals and acrylic fibers and provides large-scale
chlorine dioxide generators to the pulp and paper industry. The Company's
petrochemical plant is located in Texas City, Texas. The Company's pulp chemical
plants are located in four Canadian locations and one U.S. location. The
Company's acrylic fibers plant is located near Pensacola, Florida.
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