CMI CORPORATION CLOSES UNSECURED LENDING TRANSACTIONS WITH RECOVERY EQUITY INVESTORS, L.P.
OKLAHOMA CITY, Jan. 19 /PRNewswire/ -- CMI Corporation (AMEX: CMX) announced today that, on Jan. 15, 1993, it closed separate unsecured lending transactions with Recovery Equity Investors, L.P., a Delaware limited partnership (REI), and Larry D. Hartzog, whereby the company borrowed $1,477,500 from REI and an additional $492,500 from Hartzog. Both loans will accrue interest at the rate of nine percent per annum and are subordinated to the company's secured line-of-credit with its primary lender. In connection with the unsecured lending transactions, REI and Hartzog also purchased from the company warrants entitling them to purchase up to 450,000 shares and 150,000 shares, respectively, of voting class A common stock of the company upon payment of an exercise price of $3.75 per share. The aggregate purchase price paid for the warrants by REI and Hartzog was $50,000. The warrants, which expire on Jan. 15, 1997, provide that the number of shares of voting class A common stock which may be purchased and the exercise price at which the warrants may be exercised will be adjusted upon the occurrence of certain events. REI is a principal shareholder of the company and has two of its representatives on the company's board of directors. Hartzog is also a member of the company's board of directors. The closing of these unsecured lending transactions has allowed the company to negotiate an increase in the company's secured line-of-credit with its primary lender. This enlarged credit facility will permit the company to increase its production schedule to satisfy anticipated product sales in the first half of 1993. -0- 1/19/93 /CONTACT: Jim D. Holland, vice president & treasurer of CMI Corporation, 405-787-6020/ (CMX)
CO: CMI Corporation ST: Oklahoma IN: SU:
SM -- NY089 -- 6549 01/19/93 16:29 EST
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|Date:||Jan 19, 1993|
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