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AJAY COMPLETES REFINANCING AND DEBT RESTRUCTURE

 AJAY COMPLETES REFINANCING AND DEBT RESTRUCTURE
 DELAVAN, Wis., April 27 /PRNewswire/ -- Ajay Sports Inc. ("Ajay")


(NASDAQ: AJAY) announced today that it had completed a refinancing of its revolving loan facilities and that its subordinated debt holder, Roadmaster Corp., converted $2.9 million of its subordinated debt to equity. The debt conversion is effective as of March 31, 1992, the company said, and consists of 29,500 shares of series A 8 percent cumulative convertible preferred stock which is convertible into Ajay common stock at a conversion price of $2.50 per share beginning Jan. 1, 1993 and $3 per share beginning Jan. 1, 1994. Additionally, the series A preferred stock has a liquidation preference of $100 per share.
 The company stated the new lending arrangement was provided by Security Pacific Business Credit Inc., a wholly-owned subsidiary of Security Pacific Corp. The total credit facility is $10 million and includes a revolving line based on eligible trade receivables and inventories along with $2.5 million for letters of credit. The term of the loan agreement is through Dec. 31, 1993.
 "This is a major accomplishment," said Joseph W. Hovorka, Ajay president, "the new capital structure will give us the flexibility to accommodate the explosive growth that we anticipate."
 The company also announced today that it has extended the exercise term of its Common Stock Purchase Warrants, set to expire on May 9, 1992, for a period of six months. Accordingly, after a post- effective amendment to the company's registration statement has been filed and becomes effective, each Common Stock Purchase Warrant is exercisable at $1 per share until 5 p.m., mountain time on Nov. 9, 1992. The company will announce when its post-effective amendment becomes effective.
 Ajay Sports, through its 100 percent wholly-owned subsidiary, Ajay Leisure Products is one of the largest distributors of golf accessories as well as one of the nation's largest manufacturers of retail golf bags and hand-pulled golf carts.
 -0- 4/27/92
 /CONTACT: Joseph W. Hovorka of Ajay Sports, 303-290-9371/
 (AJAY) CO: Ajay Sports Inc. ST: Wisconsin IN: SU: FNC


BB -- DV001 -- 3172 04/27/92 12:36 EDT
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Publication:PR Newswire
Date:Apr 27, 1992
Words:354
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