American Pad & Paper LLC Exits Chapter 11; Crescent Capital Investments Affiliate Acquires Inventor of Legal Pad.Business Editors ATLANTA & PLANO, Texas--(BUSINESS WIRE)--Aug. 26, 2003 Crescent Capital Investments, Inc. ("Crescent Capital") today announced that an affiliate company (Ampad Holdings Corporation) has completed acquisition of American Pad & Paper LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Ampad"), marking Ampad's successful emergence from bankruptcy after only eight months. Ampad is credited with inventing the legal pad legal pad n. A pad of ruled, usually yellow writing paper that measures 8 1/2 by 14 inches. in 1888 and is one of North America's leading manufacturers and distributors of writing pads, filing supplies, retail envelopes and specialty papers. David Crosland, Executive Director at Crescent Capital, stated, "Our goal is to invest in good companies with capable management teams and a significant market presence with the potential for long-term growth. Ampad's brand has been a respected name in the office products industry for over 100 years. Now combined with Crescent Capital's financial strength and backing, we expect Ampad will increase its market leadership in the future." Mark Lipscomb, Ampad's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "This outcome has far reaching benefits for Ampad. Even during bankruptcy, with the continued support of our vendors, customers and employees, we were able to grow our sales and received prestigious awards for service from two of our largest customers -- Staples and Wal*Mart. Now Ampad is emerging from Chapter 11 an even stronger, more viable competitor; our customers will continue to have a leading source of high-quality office products; and Crescent Capital's equity contribution will help assure a solid financial foundation so Ampad can expand its market position." A major factor in Ampad's successful exit from Chapter 11 was the timely and focused cooperation the key parties and their advisors exhibited to reach a consensual solution. Those parties include: Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. which provided the DIP financing; Ampad along with its advisors, Gardere Wynne Sewell LLP LLP - Lower Layer Protocol and Blackhill Partners, LLC; the Official Unsecured Creditors Committee, represented by Jenkins & Gilchrist Parker Chapin LLP and Ernst & Young LLP; and Crescent Capital, which was advised by King & Spalding LLP and Casas, Benjamin & White, LLC. Under the terms of the acquisition, Crescent Capital has invested $27 million of capital into Ampad. Ampad has also been provided with a $34.5 million 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 by PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank to support its future business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . About Crescent Capital Investments Crescent Capital Investments, Inc. is an Atlanta-based private equity firm founded in 1997. It has over $500 million in capital resources with over $100 million in equity available for each transaction. Since 1998, Crescent has completed eleven transactions with an aggregate enterprise value of nearly $1 billion. The other companies in Crescent Capital's current portfolio also represent unique positions in their diverse industries. Cirrus Industries, Inc. is the second largest manufacturer of single-engine, piston-powered, general aviation aircraft in the world; MediFAX-EDI is a leading provider of health care information services See Information Systems. ; Caribou Coffee Company, Inc. is a specialty retailer of premium brewed and roasted whole bean coffee as well as teas, bakery goods and related products; Lee Industries is the number-one manufacturer of commercial paving equipment; DVT See deep vein thrombosis. Corporation is a provider of technology-based machine vision systems; Smart Document Solutions, LLC is the leading provider of medical records release of information services in the United States; Transportation Safety Technologies, Inc. is a technological leader in the manufacture of specialty electrical components and safety products for the truck, utility and emergency vehicles in the United States; and WaterMark watermark: see paper. See digital watermark. Paddlesports, Inc. is one of the premier outdoor sporting goods companies in the nation. Further information on Crescent can be found at www.crescentcapital.com. About Ampad Ampad is a leading manufacturer and distributor of writing pads, filing supplies, retail envelopes and specialty papers and serves many of the largest and fastest growing office products retailers and distributors in North America. Additional information on Ampad can be found at www.ampad.com. |
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