Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

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December 29, 2010

Debt-to-Equity Exchange Offer Successfully Completed by C&D Technologies



A debt-to-equity exchange offer has been completed by C&D Technologies. According to the announcement made by C&D Technologies (News - Alert), the total debt of the company has been reduced from approximately $175 million to $50 million. An appropriate capital structure is therefore provided to the company. This will help the company to meet its obligations and execute its future business plans.

In a press release, Dr. Jeffrey A. Graves, president and CEO of C&D Technologies, said, "Today begins a new chapter for C&D. We are very pleased that we were able to achieve our financial restructuring quickly and efficiently through this out-of-court process with minimal disruption to our business."

Dr. Graves added that as C&D enters 2011, the restructuring has helped the company find a solid financial footing. As the markets improve to pre-recession level, C&D can now take full advantage of its top position in the industry. The company will also be able to further grow its operations in Asia.

In a press release, Dr. Graves said, "C&D has been in business for more than 100 years and it is our goal to serve our customer's needs, build value for our shareholders and provide a great place to work for our employees for the next 100 and beyond."

Out of a total of $127 million of aggregate principal amount of outstanding notes, the participating noteholders together tendered approximately $125 million of aggregate principal amount of notes. These noteholders will be issued their pro rata share of 93.09 percent of the issued and outstanding Common Stock of the company. Pursuant to the terms of the exchange offer, this will be offered after the company's 1:37335:1 forward stock split has been processed. The stock split is for the benefit of the existing holders of the company's common stock.

After the exchange offer, existing holders of the company's common stock will hold approximately 6.91 percent of the company's outstanding shares of Common Stock. This will be after the processing of the forward stock split has been completed. The participating noteholders will also be issued the post-stock split shares of common stock. Subject to dilution to the extent securities, both percentages are issued under the company’s management incentive plans.


Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Jaclyn Allard
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