Management Led Investor Group Leads Financial Restructuring at CD&L
17 April 2004 - 5:00AM
PR Newswire (US)
Management Led Investor Group Leads Financial Restructuring at
CD&L * CD&L Management Invests $4.0 Million * SOUTH
HACKENSACK, N.J., April 16 /PRNewswire-FirstCall/ -- CD&L, Inc.
, one of the nation's leading providers of customized,
time-critical delivery services, announced today the Company has
completed the restructuring of the Company's $11 million Senior
Subordinated Note which was due to mature in January 2006. As a
result of a company management led investor group which provided a
$4.0 million cash infusion, the Senior Subordinated Note holders
agreed to convert a portion of the Company's subordinated debt into
Convertible Preferred Stock and to amend and modify the terms of
the remaining subordinated debt. The Company's Chairman and CEO, Al
Van Ness, said "we are very proud that our Senior Managers, in
concert with some of its Board members, our five Regional Vice
Presidents, our Business Development Manager and certain outsiders
have invested $4.0 million in CD&L's future." As reported in
the Company's 10-K filed on Wednesday, April 14, 2004, the debt
restructuring consists of the exchange of $4.0 million of senior
subordinated notes for shares of Convertible Redeemable Preferred
Stock and the extinguishment of $3.0 million of the senior
subordinated debt. In addition, the Company's revolver debt was
paid down by $1.0 million. Also, a modified and amended loan
agreement totaling $8.0 million was executed between the investor
group, the current senior subordinated note holder and CD&L.
The loan agreement features no principal payments until an $8.0
million balloon payment on April 14, 2011, interest payable at a
rate of 9.0% for the first and second years of the term, followed
by an increase in the rate to 10.5% for the third and fourth years
and a subsequent rate of 12.0% until maturity, with two series of
convertible notes, identical except for their conversion price,
with limited financial covenants. Russ Reardon, the Company's CFO
reports "this investment immediately reduces the Company's revolver
by $1.0 million and eliminates the principal payments that total
$2.0 million that were due on the senior subordinated debt in 2004
and 2005. Additionally, the scheduled $9.0 million (now $8.0
million) balloon payment was moved from January 2006 to April 2011
and the Company's interest expense is reduced by approximately
$500,000 per annum for the next two years." CD&L, Inc. operates
67 facilities in 21 states providing last mile delivery solutions
to various industries. The Company has over 1,400 employees and
utilizes approximately 2,450 independent contractors to provide
time-sensitive delivery services to thousands of customers across
the country. DATASOURCE: CD&L, Inc. CONTACT: Russell Reardon,
CFO of CD&L, Inc., +1-201-487-7740
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