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AJAY COMPLETES FIRST PHASE OF DELEVERAGING $2.9 MILLION IN SUBORDINATED DEBT TO BE CONVERTED TO EQUITY

 AJAY COMPLETES FIRST PHASE OF DELEVERAGING
 $2.9 MILLION IN SUBORDINATED DEBT TO BE CONVERTED TO EQUITY
 DELAVAN, Wis., March 19 /PRNewswire/ -- Ajay Sports Inc. ("Ajay") (NASDAQ: AJAY) announced today that it had completed a significant phase in its plan to deleverage the company. Roadmaster Corp., holder of $2.9 million in subordinated debt, has agreed to convert up to that amount to a class of convertible cumulative preferred stock. Terms and conditions are being presently finalized among the parties. The company anticipates that the convertible feature to common stock will begin in 1993 at an approximate 50 percent premium to the present market and would step-up in successive years. The company went on to note that this conversion of debt to equity, when completed, will add $2.9 million to Ajay's shareholders equity and additionally enhance the company's cash flow and profitability since ongoing obligations for principal reductions and interest payments would be eliminated.
 According to the company, the next phase will involve evaluation of the infusion of additional equity capital.
 "We are posturing Ajay to become a major force in the golfing industry," said L. Dean Cassell, president and chief executive officer of Ajay's operating subsidiary, Ajay Leisure Products Inc. "This new capital structure when completed will allow us to accommodate the explosive growth that we anticipate."
 Ajay Sports, through its 100 percent wholly-owned subsidiary, Ajay Leisure Products is one of the largest distributors of golf accessories as well as the nation's largest manufacturer of retail golf bags and hand-pulled golf carts.
 -0- 3/19/92 R
 /CONTACT: Joseph W. Hovorka of Ajay Sports, 303-290-9371/
 (AJAY) CO: Ajay Sports Inc. ST: Wisconsin IN: SU:


MC -- DV002 -- 9990 03/20/92 09:30 EST
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Publication:PR Newswire
Date:Mar 20, 1992
Words:285
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