AmeriTruck Rtgs Still S&PWatch Neg;Rtgs Could Be Afrmd.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 10/20/97--Standard & Poor's single-'B'-minus subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating and single-'B'-plus corporate credit rating of AmeriTruck Distribution Corp. remain on CreditWatch with negative implications. However, if the company integrates its refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. trucking businesses successfully and completes a proposed equity offering, Standard & Poor's believes that the ratings are likely to be affirmed. The ratings on AmeriTruck, a large motor carrier of refrigerated freight, were placed on CreditWatch April 9, 1997, following AmeriTruck's announcement of three debt-financed acquisitions, limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee. under the company's 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 worse-than-expected financial performance. In addition, AmeriTruck was expected to increase capital expenditures because of the age of one of the acquired fleets. Since the CreditWatch listing, AmeriTruck has placed more than one-third of its refrigerated operating companies on its new computer system and integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. with good, but highly preliminary, results. However, two-thirds of its operations have yet to be merged, which should occur by year-end. On Oct. 16, 1997, AmeriTruck announced that it has retained an investment banking firm to act as its exclusive agent for the private placement of additional equity. Depending on the size and terms of the proposed equity offering, the transaction could materially improve AmeriTruck's capital structure and financial flexibility. The completion of the equity offering, in conjunction with the anticipated profit improvement from the successful integration of AmeriTruck's refrigerated carrier operations, should form the basis for a rating affirmation in late 1997.---CreditWire CONTACT: Bruce Schwartz Bruce D. Schwartz is an American puppeteer and sculptor. By extension, he is also a mimic, storyteller and clown. He is using a technique where, unlike most puppeteers, who usually hide their hands in gloves, or use strings or sticks, he does the opposite and shows his hands. , 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 (1) 212-208-8092 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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