All American Communications announces stock repurchase program and proposed refinancing.SANTA MONICA Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. , Calif.--(BUSINESS WIRE)--Sept. 19, 1996--All American Communications, Inc. (Nasdaq: AACI AACI Accredited Appraiser Canadian Institute AACI Asian Americans for Community Involvement AACI American Association of Crop Insurers AACI Association of Americans and Canadians in Israel AACI Association of American Cancer Institutes and AACIB) announced today that its Board of Directors has authorized a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program under which the Company may repurchase, commencing immediately and from time to time, up to 1,000,000 shares of its common stock on the open market or in privately negotiated transactions, consistent with overall market and financial conditions. Cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. or amounts available under the Company's existing bank facility will be used to effect the Company's stock repurchase program. This facility currently permits the use of up to $5 million towards such repurchases without additional bank consent. Alternatively, the Company may use all or part of such reserves or amounts to acquire in private transactions a portion of its 6 1/2% Convertible Subordinated Notes due 2003, which are convertible into voting common stock. The Company has outstanding approximately 5.9 million shares of Common Stock, approximately 5.7 million shares of Class B Common Stock and approximately $46 million principal amount of its 6 1/2% Convertible Subordinated Notes (after giving effect to notes previously converted or acquired in private transactions), respectively. The terms of the two classes of common stock are identical except that the Class B Common Stock is non-voting (other than as required by law). In addition, the Class B Common Stock converts automatically to Common Stock upon certain changes of control of the Company. The Company also announced that it intends to pursue a refinancing for completion prior to the end of the year which, if consummated, will involve an amended and restated $150 million senior secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and an additional $100 million debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . The proceeds from the proposed debt financing are currently intended to be used to purchase or redeem all of All American's outstanding 6 1/2% Convertible Subordinated Notes and to pay down indebtedness under the Company's existing bank facility, while simultaneously providing the Company with additional liquidity for internal growth or acquisition. There is no assurance that the foregoing transactions will not be modified or that they will be consummated. Notices: This press release does not constitute the offer or sale of any securities described herein. Any such securities have not been registered under the Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in 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. absent registration or an applicable exemption from such registration requirements. Statements contained in this press release that are not historical statements (including but not limited to certain statements concerning the Company's future plans) constitute forward-looking statements which involve certain risks and uncertainties, which could cause actual results or actions to differ materially from those discussed above, including but not limited to risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the possibility that the Company may abandon or be unable to consummate any of the proposed actions referred to above, or that such actions may be undertaken on different terms than those described above, as well as various risks relating to the Company's business, including those described from time to time in the Company's filings with the Securities and Exchange Commission. CONTACT: All American Communications Inc., Santa Monica Thomas Bradshaw (CFO See Chief Financial Officer. ), 310/656-1100 or Jaffoni & Collins Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Joseph N. Jaffoni, David C. Collins, 212/505-3015 jciir@aol.com |
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