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A $30 Million Golden Parachute Courtesy of Junk-Bond Market

  • Refi deal helps fund almost $30 million for executive exit
  • Ferroglobe will pay more than 9% interest to cover package
Updated on

When a silicon producer controlled by one-time Spanish finance minster Juan-Miguel Villar Mir came to the U.S. junk-bond market last week, the deal had one curious provision.

Ferroglobe Plc earmarked a piece of the bond sale to help fund most of a roughly $30 million payment to Alan Kestenbaum, the former executive chairman who resigned a year after merging his North America-focused Globe Specialty Metals Inc. with billionaire Villar Mir’s Spanish conglomerate.