Brief: Colabor Group announces comprehensive recapitalization transactions

Colabor

14/07/2016 11:56

July 14 (Reuters) - Colabor Group Inc  GCL.TO : 
    * Colabor Group announced comprehensive recapitalization 
transactions to strengthen its balance sheet and reduce future 
interest costs 
    * Recapitalization transactions will allow Colabor to reduce 
its level of indebtedness by approximately $47.5 million 
    * Of proceeds from rights offering, $17.5 million will be 
used to reduce corporation's subordinated loan 
    * Extension for 3 years of current senior credit facilities, 
reduction of outstanding balance by approximately $30 million 
    * Says recapitalization transaction to extend maturity date 
of all debt by 3 to 5 years 
    * Of proceeds from rights offering approximately $30 million 
will be used to pay amounts outstanding under credit facilities 
    * Recapitalization transactions will allow Colabor to extend 
maturity date of all debt by 3 to 5 years 
    * Zucker currently holds about 11.8% of outstanding common 
shares and approximately 2.6% of outstanding convertible 
debentures 
    * As a result of recapitalization transactions, Zucker may 
hold up to approximately 17.8% of outstanding common shares. 
 
Source text for Eikon:  ID:nCCN3lG7Bf  
Further company coverage:  GCL.TO  
 
 (Bengaluru Newsroom: +1-646-223-8780)