Cerplex amends senior credit and subordinated agreements.TUSTIN, Calif.--(BUSINESS WIRE)--April 17, 1996--Cerplex (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CPLX), Wednesday announced it has reached new senior credit and 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". agreements with its lenders and has filed its 1995 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. with the Securities and Exchange Commission. As previously disclosed, during the fourth quarter of 1995, Cerplex was in violation of certain financial covenants, which constituted a default under the agreements. The interest rate on the senior credit facility was previously based upon a blend of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). and prime lending rates The lowest rate of interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short-term unsecured loans. The prime lending rate is an economic indicator and is often used as a measuring point for adjusting interest , but will now be prime +2.25 percent expiring on March 31, 1997. There is no change in the interest rate or term for the subordinate debt See Junior debt. . Cerplex has issued to the lender group warrants at market for 1,125,000 shares of common stock. "The credit lines allow us the flexibility to proceed with our expansion plans in Europe and North America," said James T. Schraith, president and chief executive officer of Cerplex. "Our strategy is to develop capabilities in key growth areas and provide quality services that exceed our customer's expectations." The worldwide service outsourcing business is estimated to be $76 billion annually and growing at an annual rate in excess of 10 percent (International Data Corp.) reaching $121 billion by the year 2000. This growth is fueled by the 10 to 15 percent cost reduction typically experienced by manufacturers who outsource their parts repair and logistics activity. It is estimated that 50 percent of these type of services will be outsourced by the turn of the century (D.F. Blumberg & Associates). About Cerplex Cerplex is a global leader in service outsourcing for the high technology industry. As the largest independent repair and logistics organization in the world, Cerplex provides service programs tailor-made to customer needs. Cerplex offers product services for electronic equipment in the industries of computer and peripherals, telecommunications and office automation. The company provides product repair and remarketing, parts services and logistics, and knowledge based support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . CONTACT: Cerplex Bruce Nye, 714/258-5603 bnye@cerplex.com |
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