At a meeting today with Simon Goddard, Derbys Corporate Controller, BikeBiz was provided with a press release hot off the presses. It had only just been filed with the US Securities and Exchange Commission, and its uploaded here before anywhere else.
The loan from George Soros on 30 percent credit terms is repayable once Thayer and Perseus sell Derby Cycle Corporation, something that will probably not take place until the groups fortunes have been turned around.
Heres the release:
COMPANY CLOSES REFINANCING WITH SENIOR BANK, EQUITY SPONSORS AND SOROS EQUITY PARTNERS
The Derby Cycle Corporation (the Company) announced today that it closed a $31, 000 000 refinancing with its senior lenders, its existing equity sponsors, and a new equity sponsor, Soros Private Equity Partners. The bank financing included a DM26,500,000 increase ($11,500,000) in the Companys revolcing credit facility available to the Company during its peak borrowing season in 2001 and 2002. The equity financing included $12,000,000 in new equity money and the conversion of $7,406,000 in junior subordinated debt to equity.
The Company issued $7,500,00 of Series D preferred stock bearing a 30% annual cumulative dividend to Quantum Industrial Partners, LDC, a Soros affiliate, and $2,250,000 to two of the Companys existing sponsors, Thayer Equity Investors III, L.P. (Thayer) and Perseus Cycle, LLC (Perseus). The Series D shares are redeemable at any time at the option of the Company, and redeemable by the holder upon a change of control as defined under the Companys indentures governing its senior high yield notes, in each case, subject to restrictions contained in the Companys senior credit facility. The company also converted $7,406,000 of junior subordinated notes and accrued interest held by Thayer and Perseus into Series D-1 preferred stock. The Series D-1 preferred shares are pari passu with the Series D shares and bear an annual cumulative dividend of 19%. All dividends on the Series D and Series D-1 accrue until redemption.
The DM 26,500,000 ($11,500,000) increase on the revolver is available to the Company during its next two peak seasons from January 1, 2001 to May 11, 2001 and January 1, 2002 to May 11, 2002. Other amendments to the senior facility included a new maturity date of June 30, 2002 and a revised financial covenant package.
Quantum will be entitled to appoint one representative to the Companys board of directors.