AutoInfo, Inc. Announces Debt Repayment and Restructuring.MONTVALE, N.J.--(BUSINESS WIRE)--December 14, 1998--AutoInfo, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AUTO) today announced that its senior warehouse line of credit has been paid in full and that $8.2 Million of outstanding 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". has been restructured. The Company's senior warehouse facility with CS First Boston (CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank ), which had outstanding balances during 1998 exceeding $67 Million, has been satisfied in full. Pursuant to an agreement reached with CSFB, the Company received a $2.25 million discount and CSFB was granted a five year warrant to purchase 1,357,467 shares of Company Common Stock. In addition, the Company announced that the holders of $8.2 Million of 12% subordinated notes, due in 1999 and 2000, have exchanged such notes for new notes totaling approximately $9.35 million due in 2007 and 2008. The new notes include the original principal amount plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. through December 31, 1998. Interest on the new notes is at the rate of 10% per annum Per annum Yearly. if paid in cash and 12% if paid in common shares of the Company, at the Company's election. In addition, representatives of the noteholders have been granted the right to designate three out of six members of the Company's Board of Directors. Scott Zecher, President and Chief Executive Officer of AutoInfo, stated, "These transactions constitute a major step in the Company's restructuring plan. We presently have approximately $2.4 million in cash to develop new business opportunities and a $21 million net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward to shelter future profits. Our cash resources, strengthened credit position and NOL NOL - Never Offline provides an opportunity to recreate stockholder value." This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expected or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance that forward-looking statements will prove to be accurate. |
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