Home Solutions of America Converts $2.2 Million in Debt to Equity
19 December 2003 - 12:02AM
PR Newswire (US)
Home Solutions of America Converts $2.2 Million in Debt to Equity
Note Holders Express Confidence in Company Through Conversion at a
Premium To Market HOUSTON, Dec. 18 /PRNewswire-FirstCall/ -- Home
Solutions of America, Inc. , a niche provider of specialty
residential services, announced today that it has converted $2.2
million in long term debt, incurred as part of the PW Stephens
acquisition, into the Company's common stock. The Noteholders
received 1.1 million shares of common stock, representing a price
equal to $2.00 per share. In addition, the Company received an
option to repurchase a separate PW Stephens seller note in the face
amount of $1.5 million for a prepayment of $400,000 in cash. This
option expires in January 2004. In June 2003, Home Solutions
converted $2.2 million in debt to equity at $2.60 per share. If the
Company exercises its option, Home Solutions will have retired
approximately $6 million in debt in the last twelve months. "The
conversion of an additional $2.2 million in debt to equity, at
prices above market, will significantly enhance our balance sheet
and simplify our capital structure," said Frank Fradella, Chairman
and CEO of Home Solutions. "Our niche residential services
strategy, including the recently announced Letter of Intent with
the Florida specialty interior installation company, is taking
shape. Furthermore, the opportunity to repurchase $1.5 million in
debt for a cash prepayment of $400,000 will radically improve our
balance sheet- reducing debt by approximately $6 million in the
last twelve months. These actions, together with the planned
closing of the Florida acquisition, will allow Home Solutions to
rapidly grow its revenue base and quickly reach profitability
within calendar year 2004." Home Solutions is a niche provider of
specialty residential services including Restoration Services,
Cleaning and Fabric Protection Services and Residential Renovation
Sales. Home Solutions closed its first acquisition, PW Stephens, in
November of 2002 and has subsequently closed two additional
acquisitions in July 2003 as part of this strategy. In addition,
Home Solutions currently has two letters of intent outstanding.
Statements included in this update that are not historical in
nature are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of the safe harbor
provided by Section 21E of the Securities Exchange Act of 1934, as
amended by Public Law 104-67. Forward-looking statements may be
identified by words including "anticipate," "believe," "intends,"
"estimates," "expect," and similar expressions. The Company
cautions readers that forward-looking statements including, without
limitation, those relating to the Company's future business
prospects are subject to certain risks and uncertainties that could
cause actual results to differ materially from those indicated in
the forward-looking statements, due to factors such as those
relating to economic, governmental, technological, and other risks
and factors identified from time to time in the Company's reports
filed with the SEC. CONTACT: Cormac Glynn, CEOCast, Inc. PHONE:
212-732-4300 DATASOURCE: Home Solutions of America, Inc. CONTACT:
Cormac Glynn of CEOCast, Inc., +1-212-732-4300, for Home Solutions
of America, Inc. Web site: http://www.hsoacorp.com/
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