FUQUA AND TRITON REACH SECURED LOAN AGREEMENT
FUQUA AND TRITON REACH SECURED LOAN AGREEMENT ATLANTA, Nov. 29 /PRNewswire/ -- Fuqua Industries, Inc.
(NYSE: FQA) today announced the completion and funding of a Secured Loan Agreement with Triton Group Ltd., a wholly owned subsidiary of Intermark, Inc. (AMEX: IMI).
This agreement has a term of three years, calls for the loaning of up to $32 million by Fuqua to Triton and is secured by the pledge of 100 percent of the approximate 4.3 million shares of Fuqua common stock owned by Triton. The agreement was approved by the five independent directors of Fuqua, all of whom are unaffiliated with Intermark or Triton. The loan proceeds were used principally to repay two loans which were secured by this stock with the balance to provide for working capital needs. Borrowings under the agreement are limited to 50 percent of the aggregate market value of the pledged Fuqua stock. Other important aspects of the loan are a right of first refusal in favor of Fuqua with respect to any sales by Triton of the Fuqua common stock and an extension of the term of the current Stockholder Agreement between Fuqua and Triton, which would have expired in July 1992. The decision to make this loan to Triton was made by Fuqua after it learned that Triton was about to enter into a new loan agreement which would have required the pledging of a portion of the Fuqua common stock. Frederick Beilstein, senior vice president, treasurer and chief financial officer of Fuqua, stated: "Our shareholders have been concerned about the question of who will own the Fuqua shares now controlled by Triton in the event of an Intermark bankrupcty. We felt that the refinancing needed by Triton at this time gave us an opportunity to obtain a considerable measure of control over the disposition of those shares, using the shares themselves as security with the additional protection of appropriate margin loan collateral ratios for fluctuations in the per share market price of our stock. Fortunately, Fuqua's current cash position of more than $115 million enables us to make this loan which is structured to earn for Fuqua a considerably higher rate of return than it presently achieves through its investment portfolio. We believe that Fuqua, having now provided the refinancing on a secured basis to Triton, is in an excellent position to control or play a major role in the disposition of the Triton-owned Fuqua common stock in the event of a default by Triton or Intermark on any material debt obligation." Fuqua Industries, Inc. is a $900 million consumer products and servics company with three principal areas of business: Lawn & Garden, Photofinishing, and Sporting Goods. -0- 11/29/91 /CONTACT: Fred Beilstein, senior vice president-treasurer and chief financial officer, or Page S. Turner, vice president-investor relations of Fuqua Industries, 404-658-9000/ (FQA IMI) CO: Fuqua Industries, Inc.; Triton Group Ltd.; Intermark, Inc. ST: Georgia IN: SU:
BN-DF -- AT004 -- 8047 11/29/91 10:15 EST
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|Date:||Nov 29, 1991|
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