DDL Electronics pays off $5.3 million notes; DDL also agrees to acquire a contract manufacturing company.NEWBURY PARK, Calif.--(BUSINESS WIRE)--July 1, 1997--DDL Electronics Inc. (NYSE NYSE See: New York Stock Exchange :DDL (1) (Data Description Language) A language used to define data and their relationships to other data. It is used to create the data structure in a database. Major database management systems (DBMSs) use a SQL data description language. ) Tuesday announced that it has repaid in full its 10 percent senior secured notes due July 1, 1997, in the aggregate amount of $5.3 million. To raise a portion of the funds needed to pay off the senior notes, DDL borrowed $2 million from a private investor on June 30, 1997, under an 8 percent promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. which is convertible into DDL common stock at 75 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The shares which are issuable upon conversion have registration rights, but are subject to a three-month lock-up period. The convertible note matures Aug. 31, 1998, and is secured by a pledge of all of the outstanding shares of SMTEK Inc., DDL's U.S. operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . DDL also agreed to give the investor two seats on its seven-person board of directors. Concurrent with entering into the convertible note, DDL agreed to acquire a privately held electronics contract manufacturing company in Florida that is controlled by the investor for 9 million shares of DDL's common stock. This acquisition is subject to the approval of DDL's stockholders and to obtaining a fairness opinion Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. on the transaction. DDL is an independent provider of electronic manufacturing services (EMS) for electronic equipment manufacturers. DDL also manufactures printed circuit boards (PCBs) for use primarily in the computer, communications and instrumentation industries. Its EMS facilities are located in Southern California and in Northern Ireland, and its PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. facilities are located in Northern Ireland. Certain statements made above are forward-looking in nature and reflect DDL's current expectations and anticipated future plans. Such statements involve various risks and uncertainties that could cause actual results to differ materially from those forecast in the statements. Factors that might cause such differences would include, without limitation, the factors described as "Risk Factors" in DDL's Registration Statement on Form S-3 (No. 333-02969) on file with the Securities and Exchange Commission. CONTACT: DDL Electronics Inc., Newbury Park Rick Vitelle, 805/376-9415, ext. 142 |
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