EFTC Reports Closing an Additional $14 Million Investment by Thayer and Blum.Business Editors, High-Tech Writers DENVER--(BUSINESS WIRE)--July 17, 2000 EFTC EFTC European Fluorocarbon Technical Committee EFTC Extraction Force Transfer Coupling (aerial delivery operations) EFTC Emirates Filipino Tennis Club (United Arab Emirates) Corporation (Nasdaq:EFTC), a leading provider of high-mix electronic manufacturing services, reported that Thayer Equity Investors IV, L.P. (Thayer) and BLUM Capital Partners, L.P. (BLUM) have invested an additional $14 million in EFTC on July 14, 2000 in exchange for senior subordinated exchangeable notes. This investment is the second stage of a public recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. . In the first stage of the recapitalization transaction, on March 30, 2000, Thayer and BLUM invested a total of $54 million in EFTC in exchange for senior subordinated exchangeable notes and warrants. In the final stage of the recapitalization transaction, Thayer and BLUM intend to undertake a tender offer, which is subject to the satisfaction of certain conditions, of up to 5,625,000 shares of outstanding common stock of EFTC at a price of $4.00 per share. Upon shareholder approval of certain aspects of the transaction and consummation of the tender offer, the warrants will be cancelled and the senior subordinated exchangeable notes issued in March will be exchanged for senior subordinated convertible notes that are convertible into common stock at a conversion price of $2.58 per share and the senior subordinated exchangeable notes issued in July will be exchanged for EFTC's Series B 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". which accrues dividends at a rate of 8.875% and is convertible into common stock at $1.80 per share of common stock. The tender offer will commence at about the time EFTC mails a proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. to its shareholders to seek their approval of certain aspects of the transaction. EFTC anticipates that the proxy statement will be mailed by the end of the week of July 17, 2000. EFTC, a provider of high-mix electronic services, is headquartered in Denver, Colorado and employs over 1,500 people nationwide. EFTC provides its services primarily to OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers in the avionics, medical, instrumentation, and communications industries communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . Thayer Capital Partners is a private equity investment firm based in Washington, DC. Thayer manages two private equity funds with more than $1.2 billion under management. The firm focuses on buyouts and growth equity investments in four primary industries: information technology and services, electronics and outsourced manufacturing, travel and leisure services, and outsourced business services. BLUM Capital Partners is a San Francisco-based private equity and strategic block investment firm, which manages in excess of $3 billion in capital both domestically and internationally. BLUM has invested in a wide variety of businesses and has been successful initiating value-enhancing strategies, including going-private transactions, equity infusions to either restructure a balance sheet or provide growth capital, share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. , acquisition programs, and business unit divestitures. This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of the company. If an offer is commenced, Thayer and BLUM will file a tender offer statement with the U.S. Securities and Exchange Commission and EFTC will file a solicitation/recommendation statement with respect to the offer. The tender offer statement (including an offer to purchase, a related letter of transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. , and other offer documents) and the solicitation/recommendation statement will contain important information which should be read carefully before any decision is made with respect to the offer. The offer to purchase, the related letter of transmittal and certain other offer documents, as well as the solicitation/recommendation statement, will be made available to all stockholders of EFTC at no expense to them. The tender offer statement (including the offer to purchase, the related letter to the transmittal, and the other offer documents filed with the commission) and the solicitation/recommendation statement will also be available at no charge at the Commission's website at www.sec.gov. 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 provides that the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. shall not apply to such statements made in connection with a tender offer. Any forward-looking statements made in connection with a tender offer contained in any prior EFTC press release are excluded from the application of the safe harbor. |
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