American Residential Services announces closing of $55 million, 7 1/4% convertible subordinated notes.HOUSTON--(BUSINESS WIRE)--April 2, 1997--American Residential Services, Inc. (NYSE NYSE See: New York Stock Exchange :ARS), today announced that it has sold $55 million of 7 1/4% convertible subordinated notes due 2004 through a private placement. The notes are unsecured obligations and convertible into ARS common stock at a conversion price of $25.50 per share. The notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. and were not registered under the Securities Act of 1933 or any state securities or blue sky laws blue sky laws n. laws intended to protect the public from purchasing stock in fraudulent companies that lack substance, such as those selling swamp land, non-existent gold strikes and dry oil wells, or who have no assets besides a post office box. . This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes. The Company intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering to repay bank indebtedness incurred in connection with acquisitions and for general corporate purposes. "The money we raised from this offering will provide additional flexibility under the Company's $100 million credit line, along with issuances of the Company's common stock, for funding future acquisitions," explained Hank Nicodemus, Chief Financial Officer. "This provides us with a strong capital base to support an aggressive acquisition strategy." American Residential Services is the largest publicly held company 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. engaged principally in providing comprehensive maintenance, repair, replacement and new equipment installation services for heating, air conditioning, plumbing, electrical, indoor air quality Indoor Air Quality (IAQ) deals with the content of interior air that could affect health and comfort of building occupants. The IAQ may be compromised by microbial contaminants (mold, bacteria), chemicals (such as carbon monoxide, radon), allergens, or any mass or energy stressor and major home appliances primarily in homes, including homes under construction, and small commercial buildings. CONTACT: American Residential Services, Inc., Houston Jennifer L. Tweeton, 713/599-9015 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion