Citation Reworks Debt, Equity Terms

Jan. 6, 2004
Cuts overall obligation by est. $116 million

Citation Corp. reports it has arrived at a debt and equity restructuring agreement with its lenders. The foundry holding company said affiliates of Kelso & Co., its primary shareholder, have invested an additional $20 million.

The new arrangement gives Citation liquidity by restructuring its current debt service arrangement, and lowers its overall debt by about $116 million.

The Birmingham, AL-based company produces cast aluminum, steel, and iron; forged steel; and machined metal components at 17 different operations. It supplies capital and durable goods manufacturers with parts for automobiles and trucks, off-highway and agricultural equipment, and numerous other industrial and durable goods.

Citation CEO, Ed Buker, said, “I am confident that these new arrangements will position Citation for future growth and improved profitability as both our core business as well as the nation’s overall economy continue to improve.”