CalComp Restructures Debt Owed to Lockheed Martin, Engages Banker to Advise on Strategic Alternatives.ANAHEIM, Calif.--(BUSINESS WIRE)--July 16, 1998--CalComp Technology Inc. (Nasdaq:CLCP CLCP Certified Literate Community Program ) Thursday announced that it has completed an agreement to restructure $60 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. owed to Lockheed Martin Corp. (NYSE NYSE See: New York Stock Exchange :LMT LMT left mentotransverse (position of fetus). ) and has engaged Salomon Smith Barney to advise the company on strategic alternatives. Under the new agreement, Lockheed Martin will receive 1 million nonvoting shares of 8 percent nonconvertible Series A preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of CalComp Technology, priced at $60 per share. As part of the agreement, CalComp's revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. with Lockheed Martin will be reduced to $13 million from $73 million. The company said it expects to use this line to meet operating expenses in the third quarter ending Sept. 27, 1998. John Batterton, president and chief executive officer of CalComp, said the company had previously entered into a letter of intent with a bank for an additional $25 million senior line of credit, but was not able to reach agreement, and these negotiations were recently terminated. Batterton said Lockheed Martin has agreed to consider providing CalComp with additional funding to meet the company's liquidity requirements. Failure to obtain additional funding will result in material liquidity problems for the company. With the completion of the Lockheed Martin preferred-stock agreement and the resulting improvement of its balance sheet, CalComp continues to meet the requirements for its common shares to trade on Nasdaq's National Market System. CalComp is a leading developer and manufacturer of computer-graphics peripherals and supplies for business and professional applications. As an industry leader in piezo "Piezo", derived from the Greek piezein, which means to squeeze or press, is a prefix used in:
This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 related to CalComp Technology's ability to successfully conclude negotiations with Lockheed Martin and obtain additional funding required to meet near-term liquidity requirements. Actual results may differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's periodic reports filed with the Securities and Exchange Commission and its most recently filed Form 8-K.
CONTACT: CalComp Technology Inc., Anaheim
John Millerick, 714/821-2500
or
Pondel Parsons & Wilkinson, Los Angeles
Mike Pollock or Roger Pondel, 310/207-9300
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