By Mike Boyer
The Cincinnati Enquirer
Now that it has secured new financing, Milacron Inc. has to hope a rebound in the plastic-molding machine market takes place.
Shares of the 120-year-old company jumped 45 percent Monday, closing at $3.48, up $1.08 in trading about six times its normal volume.
Monday was the first day of trading since the company announced late Friday that it secured $100 million in new financing from two European sources.
The 11th-hour arrangement allowed the company, which employs about 1,000 in Greater Cincinnati, to refinance $115 million in senior notes that expired Monday.
Without the new financing, the company faced the prospect of seeking Chapter 11 bankruptcy reorganization, analysts said.
"This is a real coup for Milacron's management," said Walter Liptak, analyst with McDonald Investments.
The company still faces repaying about $140 million in eurobonds coming due in April 2005. But if business continues to improve, Milacron should be able to obtain high-yield debt to refinance that obligation, Liptak said.
"A lot depends on the economy," he said. "If business continues to pick up and the company can generate some profits, people will be a lot more confident about the future."
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