Woods Equipment Company and its subsidiary, WEC Company, announced that a lock-up agreement. (Company News).Woods Equipment Company and its subsidiary, WEC WEC World Energy Council WEC World Extreme Cagefighting (mixed martial arts sport) WEC World Enduro Championship (FIM Motorcycle Event) WEC World Environment Center WEC Washington Environmental Council Company, announced that a lock-up agreement Lock-Up Agreement A legally binding contract between the underwriters and insiders of a company prohibiting these individuals from selling any shares of stock for a specified period of time. has been reached with the holders of WEC's 12% Senior Notes due 2009 and Woods' 15% Senior Discount Debentures due 2011 to restructure the company's debt. Under the agreement, the Note and Debenture holders have agreed to exchange all of their Notes and Debentures for all of the common stock of Woods. Additionally, the company will enter into an amended 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 Fleet Capital Corporation as agent, increasing the current facility from $50 million to $70 million. The restructuring is subject to the negotiation of definitive transaction documentation and is expected to be completed by December 31, 2001. Upon completion of the restructuring, the company will have eliminated $176.7 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. and related interest from its balance sheet and believes it will have adequate liquidity to meet its future growth needs. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion