ACCEL International Corp. announces results of rights offering to stockholders; commences offer to purchase shares of the company to employees, independent agents and customers.DUBLIN, Ohio--(BUSINESS WIRE)--Sept. 11, 1996-- Rights Offering Results - ACCEL ACCEL Accelerate ACCEL Accelerometer ACCEL Accelerando (Music, Gradually Increasing in Speed) ACCEL American College of Cardiology Extended Learning International Corp. (NASDAQ/NMS:ACLE ACLE Alarm and Control Enhanced (NEC) ACLE Association for Continuing Legal Education ) today announced a total of 3,976,288 shares of common stock were subscribed for at a price of $2.25 per share by stockholders of the company. The company had issued non-transferable subscription rights to stockholders of record as of June 18, 1996, entitling them to purchase 1.5 shares of common stock of the company for each share held as of the record date. The Rights Offering expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. at 5:00 p.m., Columbus time, on Aug. 28, 1996. Total consideration of $8,946,648, consisting of cash and promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. of the company, was tendered for the purchase of the shares. Noteholders tendered $5,702,805 principal amount of 10 1/8 percent promissory notes as consideration for the purchase of 2,534,580 shares. Cash proceeds from the Rights Offering totaled $3,243,843 for the purchase of 1,441,708 shares. The company will use the proceeds to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. notes which were not tendered, invest in or settle obligations to Acceleration Life Insurance Co. and Acceleration National Insurance Co., and for general corporate purposes. Additional Offering - The company will now offer up to 250,000 of the shares of common stock not subscribed for by stockholders to employees, independent agents and customers of the company. The additional offering is being made directly by the company through the executive officers of the company and at the offering price of $2.25 per share. The offering will end not later than Sept. 30, 1996. No soliciting fees or other compensation will be paid in connection with the additional offering. Commentary - Thomas H. Friedberg, chairman of the board, president and chief executive officer of ACCEL, commenting on the results of the Rights Offering, said, "We are very pleased with the success of the offering and wish to express our thanks and gratitude Gratitude agrimony traditional symbol for gratitude. [Flower Symbolism: Flora Symbolica, 172] Androcles because he had once extracted a thorn from its paw, the lion refrained from attacking Androcles in the arena. [Rom. Lit. on behalf of ACCEL to our stockholders for this demonstration of trust and support." He continued, "Approximately 90 percent of the outstanding 10 1/8 percent promissory notes were tendered for the purchase of shares and close to three and a quarter million dollars in cash was received. These results will significantly strengthen the company's balance sheet and improve future earnings." He concluded, "I am also pleased our board of directors had decided to extend the offering of unsubscribed Unsubscribed Newly issued securities that have not seen much interest, or subscriptions, from investors ahead of the issue date or have not been offered by brokerages. If you wanted to own the newly issued shares, you'd only be able to purchase them as you would any other stock shares to our employees, agents and customers. They are key participants to our achieving further improvements in financial results for the company in the future." ACCEL International Corp. is a Dublin, Ohio-based insurance holding company that provides specialty insurance products and services through its life and casualty subsidiaries operating throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CONTACT: ACCEL International Corp., Dublin Nicholas Z. Alexander, 614/764-7180 |
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