DRYPERS CORPORATION CLOSES FINANCING.HOUSTON, TEXAS--(BUSINESS WIRE)--March 1, 1996--Drypers Corporation (Nasdaq:DYPR) today announced it has closed a financing package comprised of a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, with a borrowing base of up to $21 million, from Congress Financial Corporation and approximately $9 million of new equity in the form of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . This financing package permits Drypers to: o repay all past due interest to holders of the Company's 12 1/2% Senior Notes; o replace the Company's existing $15 million revolving credit facility; and o provide working capital for future growth. In addition, as previously announced, the Company is also benefitting from improved terms from several of its major suppliers. Walter V. Klemp, Chairman and Co-Chief Executive Officer, stated, "Our new financing package will strengthen our capital structure and provide the working capital which will enable Drypers to take advantage of the rapidly improving conditions in the diaper market." Terry Tognietti, Co-Chief Executive Officer also noted that, "Drypers' grocery market share has increased by almost 50% over levels in mid- mid- pref. Middle: midbrain. 1995. Our U.S. market share for diapers and training pants is now at an all-time high. Recently, we have experienced margin improvement reflecting the combined affects of declining raw material prices and the successful outcome of the cost cutting measures the Company put in place in 1995. Moreover, we are especially excited that our improved thin product is meeting with strong consumer acceptance and we have new product innovations currently in the test stages. Additionally, opportunities for Drypers in the private label segment have demonstrably de·mon·stra·ble adj. 1. Capable of being demonstrated or proved: demonstrable truths. 2. Obvious or apparent: demonstrable lies. increased, due in large part to industry consolidation and our proven track record." Drypers Corporation manufactures and markets disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. baby diapers and related products under the Drypers(R) brand name. The Company's products are sold through grocery stores and mass merchants throughout 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. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and other international markets. The Company also produces price value branded and private label diapers and related products. CONTACT: Drypers Corporation, Houston Walter V. Klemp Chairman & Co-Chief Executive Officer 713/682-6848 or Morgen-Walke Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Lynn Morgen/Howard Zar/ Melissa Garelick Press: Suzanne Miller 212/850-5600 |
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