Continental Building Products, Inc. (NYSE:CBPX) Files An 8-K Entry into a Material Definitive Agreement

On January 17, 2017, Continental Silver Grove, LLC, a subsidiary of Continental Building Products, Inc. (together, the “Company”) entered into contracts for the supply of synthetic gypsum to the Company’s Silver Grove, Kentucky gypsum wallboard plant with each of (i) Dynegy Zimmer, LLC, an affiliate of Dynegy Inc. (“Dynegy”) in respect of the supply of synthetic gypsum from Dynegy’s Wm. H. Zimmer power generating station in Moscow, Ohio (the “Zimmer Generating Station”) and (ii) Dynegy Miami Fort, LLC, an affiliate of Dynegy, for the supply of synthetic gypsum from Dynegy’s Miami Fort power generating station in North Bend, Ohio (the “Miami Fort Generating Station”) (together the “Gypsum Contracts”). Each of the Gypsum Contracts provides for the supply of synthetic gypsum at an agreed base price, subject to escalation provisions, for a 20-year term. The Gypsum Contracts are structured as “take or pay” arrangements, where the suppliers are required to supply a specified annual amount of synthetic gypsum and the Company is required to buy a specified annual amount, or else, in either case, pay contractual penalties. Each Gypsum Contract also provides that the Company has the right to all of the wallboard-grade synthetic gypsum produced by the Zimmer Generating Station and the Miami Fort Generating Station. Dynegy is required under each Gypsum Contract to provide the Company with certain advance notice in the event the relevant power generating station is decommissioned or shut down, or pay certain liquidated damages to the Company.

The foregoing summaries of the Gypsum Contracts do not purport to be complete, and are qualified in their entirety by reference to the text of the Gypsum Contracts, redacted copies of which will be filed with the Securities and Exchange Commission (the “SEC”) as exhibits to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, and are incorporated herein by reference. The Company intends to seek confidential treatment for certain portions of the Gypsum Contracts to a confidential treatment request that it intends to submit to the SEC.

Item 1.02. Termination of a Material Definitive Agreement

On January 17, 2017, concurrent with the execution of the Gypsum Contracts, the Company entered into agreements terminating the following gypsum supply contracts: (i) the Gypsum Contract dated as of December 29, 1998, as amended, among Dynegy Zimmer LLC (as successor to Duke Energy Ohio, Inc.), The Dayton Power and Light Company, and AEP Generation Resources Inc., (as successor to Columbus Southern Power Company) (each an owner of the Zimmer Generating Station) and the Company (as successor to Lafarge North America Inc.) (the “Original Zimmer Contract”) and (ii) the Amended and Restated Gypsum Contract dated as of June 8, 2005 between Dynegy Miami Fort, LLC, (as successor to The Cincinnati Gas & Electric Company and an operating owner of the Miami Fort Generating Station) and the Company (as successor to Lafarge North America, Inc.) (together, the “Prior Gypsum Contracts”). The Prior Gypsum Contracts each provided for the long-term supply of synthetic gypsum to the Company’s Silver Grove, Kentucky gypsum wallboard plant at an agreed price and was otherwise subject to substantially similar general terms and conditions as the Gypsum Contracts.

About Continental Building Products, Inc. (NYSE:CBPX)
Continental Building Products, Inc. is a manufacturer of gypsum wallboard and complementary finishing products. The Company’s segment is wallboard. The Company’s manufacturing facilities and sales efforts are concentrated in the eastern United States and eastern Canada. Gypsum wallboard is a primary building material used in new residential and commercial construction and in repair and remodel (R&R). The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company offers a range of gypsum wallboard products, including LiftLite, Mold Defense and Weather Defense. LiftLite is a lightweight wallboard for use on interior walls and ceilings. Mold Defense is designed for protection against mold and mildew. Weather Defense is a line of moisture and mold-resistant exterior sheathing. It operates automated manufacturing facilities in Silver Grove (Kentucky), Palatka (Florida) and Buchanan (New York). Continental Building Products, Inc. (NYSE:CBPX) Recent Trading Information
Continental Building Products, Inc. (NYSE:CBPX) closed its last trading session down -0.35 at 22.15 with 202,664 shares trading hands.