AMG Advanced Metallurgical Group N.V. Successfully Prices $307.2 Million Of Tax-Exempt Bonds, Generating $325 Million In Proceeds

Amsterdam, 27 June 2019 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) announces that AMG Vanadium LLC (“AMG-V”), the borrower, has successfully priced $307.2 million of bonds in the US tax-exempt market, generating a total of $325 million in proceeds through the Ohio Air Quality Development Authority. Financial closing is scheduled for July 11, 2019. The bonds are guaranteed by AMG.

The bonds will fund a new greenfield resid spent catalyst recycling facility near Zanesville, Ohio approximately 25 miles from AMG-V’s current spent catalyst recycling facility in Cambridge, Ohio. The facility will create approximately 100 new, permanent production and management jobs in addition to 500-600 temporary jobs during construction.

AMG-V entered the market this morning offering a 5.00% coupon to yield 4.35%, maturing on July 1, 2049. In response to the over $940 million of orders (3.0x principal amount) received from 46 institutional investors, the yield was reduced to 4.28%, representing a spread of 197 bps to MMD (the tax-exempt AAA benchmark index). In order to provide flexibility in the future, the bonds are callable at 100% beginning on July 1, 2029.

“AMG has a stated objective to maintain our presence as the world leader in the recycling of resid spent catalysts not only now, but in the future,” said Dr. Heinz Schimmelbusch, CEO of AMG. “Essentially doubling our recycling capacity in Southeast Ohio represents a decisive step toward achieving that objective.”

Moody’s Investors Service has affirmed its B1 corporate family rating for AMG with a stable outlook, upgraded its secured rating from B1 to Ba3 and assigned a rating of B3 to the unsecured tax-exempt bonds.

S&P Global Ratings, a division of The McGraw Hill Companies, Inc. has affirmed its BB-issuer credit rating for AMG with a stable outlook, upgraded its secured rating from BB- to BB and assigned a rating of B with a stable outlook to the unsecured tax-exempt bonds.

The transaction was underwritten by Citigroup Global Markets Inc. and Morgan Stanley.


About AMG Vanadium LLC

AMG Vanadium LLC is a wholly-owned subsidiary of AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”), a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. Located in Cambridge, Ohio, AMG Vanadium specializes in the environmentally beneficial conversion of oil refinery and power plant waste products into specialty metals used by global steel producers in automotive, energy transmission and infrastructure applications. By using materials which would otherwise be discarded as waste, AMG Vanadium encourages environmental stewardship, energy conservation and resource recovery, making it the environmental leader in this global industry. AMG Vanadium is the North American ferrovanadium market share leader and has two primary product lines: FEROVAN®, its ferrovanadium alloy used in the production of steel to improve its strength, and FeNiMoly® which is a valuable additive utilized in the production of stainless and carbon steels.