Harbin Electric Completes the Repurchase of $26.5 Million of 2012 Notes
HARBIN, China, Aug. 12, 2009 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. ("Harbin Electric" or the "Company", Nasdaq: HRBN), a leading developer and manufacturer of a wide array of electric motors in the People's Republic of China, today announced that it has completed the repurchase of $26.5 million aggregate principal amount of its outstanding Guaranteed Senior Secured Floating Rate Notes, due September 1, 2012 (the "2012 Notes").
The 2012 Notes, in an original aggregate principal amount of $38 million, were issued on August 29, 2006. The interest rate payable semi-annually on the 2012 Notes was a rate equal to LIBOR plus 3.35%. The six month LIBOR rate was 1.80375% as of March 2, 2009. The Company would begin to make scheduled principle payment on September 1, 2009 on the 2012 Notes. Citadel Equity Fund Ltd. ("Citadel") is one of the 2012 Notes holders that held $26.5 million of the 2012 Notes ("Citadel Notes").
Pursuant to the Letter Agreement dated June 1, 2009 by and among Harbin Electric and Citadel, the Company was granted the option to repurchase all (but not part) of the Citadel Notes at any time on or prior to August 31, 2009 for a repurchase price in cash equal to 85% of this aggregate principal amount of the Citadel Notes plus accrued and unpaid interest thereon to but excluding the repurchase date.
On August 7, 2009, the Company paid a total of $23,131,997.22 to repurchase the Citadel Notes, which amount was comprised of $22,525,000 representing 85% of the $26,500,000 aggregate principal amount of the Citadel Notes plus $606,997.22 representing accrued and unpaid interest on the Citadel Notes to but excluding the repurchase date of August 11, 2009. Upon completion of the repurchase, the Citadel Notes were cancelled.
About Harbin Electric, Inc.
Harbin Electric, headquartered in Harbin, China, is a leading developer and manufacturer of a wide array of electric motors with a focus on innovative, customized and value-added products. Its major product lines include linear motors, automobile specialty micro-motors, and industrial rotary motors. The Company's products are purchased by a broad range of domestic and international customers, including those involved in oil services, factory automation, food processing, packaging, transportation, automobile, medical devices, machinery and tool manufacturing, petrochemical, as well as in the metallurgical and mining industries.
Harbin Electric has built a strong research and development capability by recruiting talent worldwide and through collaborations with top scientific institutions. The Company owns numerous patents in China and has developed award-winning products for its customers. Through its U.S. and China-based subsidiaries, the Company operates three manufacturing facilities in China located in Harbin, Weihai, and Shanghai with a total of approximately 1,800 employees. Each of the three manufacturing facilities is dedicated to a specific product line and is equipped with state-of-the-art production equipment and quality control systems.
As China continues to grow its industrial base, Harbin Electric aspires to be a pioneer in leading the industrialization and technology transformation of the Chinese manufacturing sector. To learn more about Harbin Electric, visit http://www.harbinelectric.com/ .
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from those described in this press release. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in the Company's periodic filings with the U.S. Securities and Exchange Commission, including the factors described in the section entitled 'Risk Factors' in its annual report on Form 10-K for the year ended December 31, 2008. The Company does not undertake any obligation to update forward-looking statements contained in the press release. This press release contains forward-looking information about the Company that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may, "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products.
For investor and media inquiries, please contact: In China Harbin Electric, Inc. Tel: +86-451-8611-6757 Email: MainlandIR@Tech-full.com In the U.S. Christy Shue Harbin Electric, Inc. Executive VP, Finance & Investor Relations Tel: +1-631-312-8612 Email: cshue@HarbinElectric.com Kathy Li Christensen Investor Relations Tel: +1-212-618-1987 Email: kli@christensenir.com