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Signature Group Sells Notes, Business

Signature Group Holdings Inc. said Monday it has sold $305 million in secured notes and an operating subsidiary to help finance an acquisition. The Sherman Oaks investment firm agreed in October to buy Global Recycling and Specification Alloys from Aleris Corp. for $525 million. The $305 million in debt, together with an earlier secondary stock offering and available cash, will finance the acquisition. Some of that cash will come from the divestiture announced Monday of North American Breaker Co. LLC, a Burbank subsidiary of Signature that sells electric switches. The sale to an investor group led by PNC Capital Finance LLC in Cleveland will bring in $79 million. Signature bought North American Breaker in 2011 for about $37 million. Signature plans to complete the Global Recycling acquisition in February. Shares closed up 53 cents, or nearly 7 percent, to $8.53 in over-the-counter trading.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
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