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SEC Filings

8-K
NN INC filed this Form 8-K on 08/23/2017
Entire Document
 


  (g) Represents the loss on extinguishment of debt and write-off of unamortized debt issuance costs as if the proceeds of the Transaction had been used to pay down the Company’s senior notes and credit facilities as of January 1, 2016. The senior notes were redeemed on April 3, 2017 for $281.6 million, resulting in a loss on debt extinguishment that included a $31.6 million call premium and a $4.7 million write-off of unamortized debt issuance costs. The pro forma adjustments reflect the effect as if the redemption of the senior notes using proceeds from the Transaction had occurred on January 1, 2106 rather than April 3, 2017, consistent with the Company’s prioritization to pay down debt bearing the highest interest rate first. In connection with the senior notes redemption on April 3, 2017, the credit facility was amended, resulting in an additional loss on extinguishment of approximately $3.4 million. The pro forma adjustments consist of the following amounts:

 

     Six Months Ended
June 30, 2017
     Year Ended
December 31, 2016
 

Senior Notes:

     

Call premium

   $ (31,585    $ 54,792  

Unamortized debt issuance costs

     (4,660      4,923  

Credit Facility:

     

Unamortized debt issuance costs

     (3,394      2,783  
  

 

 

    

 

 

 

Pro forma adjustment to loss on extinguishment of debt and write-off of unamortized debt issuance costs

   $ (39,639    $ 62,498  
  

 

 

    

 

 

 

 

  (h) Represents the impact on diluted shares outstanding after giving effect to the operating results of the PBC Business and other pro forma adjustments. The following table presents a reconciliation of pro forma net income (loss) per share.

 

     Six Months Ended
June 30, 2017
     Year Ended
December 31, 2016
     Year Ended
December 31, 2015
     Year Ended
December 31, 2014
 

Pro forma net income (loss)

   $ 9,814      $ (28,790    $ (23,510    $ (12,228

Pro forma basic weighted average shares outstanding

     27,358        27,016        21,181        17,887  

Pro forma effect of dilutive stock options

     334        —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma diluted shares outstanding

     27,692        27,016        21,181        17,887  
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma basic net income (loss) per share

   $ 0.36      $ (1.07    $ (1.11    $ (0.68

Pro forma diluted net income (loss) per share

   $ 0.35      $ (1.07    $ (1.11    $ (0.68

For the six months ended June 30, 2017, approximately 0.4 million potentially dilutive stock options had the effect of being anti-dilutive and were excluded from the calculation of pro forma net income per share. Given the pro forma net losses for the years ended December 31, 2016, 2015 and 2014, all options are considered anti-dilutive and were excluded from the calculation of pro forma diluted net loss per share.

 

  (i) Represents the net deferred income tax liability related to the PBC Business.