The Oneida Group has entered into an equity commitment agreement with its largest stockholder, Centre Lane Partners, providing for a $50 million equity capital infusion by way of a rights offering to existing stockholders. Oneida’s CEO has also resigned to pursue another opportunity.
The rights offering will be offered to all of its eligible stockholders, with Centre Lane agreeing to purchase any shares that other company stockholders do not subscribe for. The rights offering is targeted to close by the end of August 2018.
Pursuant to the agreement, Centre Lane will exercise early $7.5 million of the rights being issued to it. This $7.5 million is expected to be funded by July 20 and will be used for general working capital. The remaining proceeds from the rights offering will be used to pay down debt and is expected to enhance the company’s long-term liquidity.
“This equity commitment will strengthen our balance sheet by repaying our term debt. These funds will serve as a foundation for growth and position Oneida for the future,” said David Weinstein, chairman of the board, The Oneida Group.
In addition, CEO Patrick Lockwood-Taylor has tendered his resignation and he will leave his post as CEO in early August. He has accepted a role with a different industry focus, the company said.
“During his tenure, Patrick made numerous positive contributions to The Oneida Group and we thank him for his service,” said Weinstein.