HUNTSVILLE, Ala., Oct. 30, 2007 (PRIME NEWSWIRE) -- Wolverine Tube, Inc. (OTCBB:WLVT) today announced the results of the rights offering that expired on October 29, 2007. The Company's shareholders purchased 25,450,453 shares of common stock, resulting in gross proceeds of $28.0 million. The proceeds from the rights offering, after expenses, will be used to reduce outstanding amounts under our secured revolving credit facility and receivables sales facility.
Steven S. Elbaum, Chairman, stated, "We are pleased with the support our shareholders have shown with their participation in this rights offering. Additionally, I anticipate that The Alpine Group, Inc. and Plainfield Special Situations Master Fund Limited will exercise the call option described in the Preferred Stock Purchase Agreement governing their initial investment in Wolverine and acquire 4,620 shares of Series A Convertible Preferred Stock for $4.62 million. The proceeds from the call option exercise, together with the rights offering proceeds, will aggregate $32.6 million in additional equity invested in Wolverine."
About Wolverine Tube, Inc.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube, fabricated products, and metal joining products. Internet addresses: www.wlv.com and www.silvaloy.com
Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements use such words as "may", "should", "will", "expect", "believe", "plan", "anticipate" and other similar terminologies. This press release contains forward-looking statements regarding the Company's recapitalization plan, including expectations of additional preferred equity investment. Such statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, as well as management's beliefs and assumptions about the Company's business and other information currently available. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company undertakes no obligation to publicly release any revision of any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could affect actual results include, without limitation, whether our existing preferred stockholders complete the purchase of additional shares of preferred stock pursuant to their call option as expected. A discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements can be found in the Company's Annual Report on Form 10-K for the most recently ended fiscal year (as amended) and reports filed from time to time with the Securities and Exchange Commission.