CD & L S2 (AMEX:CDV)
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From May 2019 to May 2024
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