HUNTSVILLE, Ala., March 10, 2008 (PRIME NEWSWIRE) -- Wolverine Tube, Inc. (OTCBB:WLVT) ("Wolverine") announced that it has entered into $48.3 million of capital commitments with Plainfield Special Situations Master Fund Limited ("Plainfield") and The Alpine Group, Inc. ("Alpine"). Plainfield and Alpine currently own 54,494 shares of 8 1/2% Convertible Preferred Stock of Wolverine, convertible into approximately 55% of Wolverine on a fully diluted basis.
Pursuant to the commitments, Plainfield will exchange $38,300,000 of Wolverine's 7 3/8% Senior Notes held by them for new 10 1/2% notes in like principal amount due March 28, 2009. Alpine has committed to purchase from the Company 10,000 shares of 8 1/2% Series B Preferred Stock for a purchase price of $1,000 per share, convertible into common stock at $1.10 per share.
Wolverine anticipates closing on the commitments no later than March 28, 2008. Mr. David A. Owen, Wolverine's Chief Financial Officer, stated, "The capital commitments made by Plainfield and Alpine, together with existing cash and credit sources, are adequate to comfortably address Wolverine's operational and debt repayment requirements for 2008. Anticipated positive cash flows from operations and other actions are expected to address further liquidity and investment needs for 2009 and beyond."
Mr. Steven S. Elbaum, Chairman of Wolverine and Alpine, stated, "Alpine and Plainfield are pleased to provide the capital commitments to continue to support and strengthen Wolverine. We are highly confident that Wolverine is making solid progress in positioning itself as a world class competitor and provider of value to its customers and markets. This will also deliver long term value to its shareholders and employees."
Due to Plainfield and Alpine being "related parties" the above transactions were reviewed and approved by members of the Board of Directors not affiliated with either Plainfield or Alpine. Jefferies & Company, Inc. acted as independent advisor to Wolverine and delivered a fairness opinion related to the transaction with Plainfield in connection with the Board's review and approval.
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
All statements in this press release other than statements of historical fact are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in this press release. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward-looking statement contained herein if there are any changes in conditions or circumstances on which any such forward-looking statement is based.