C&D Technologies Successfully Completes Debt-To-Equity Exchange Offer
C&D Technologies, Inc. announced that it has completed its debt-to-equity exchange offer, reducing the company’s total debt from approximately $175 million to $50 million and providing the company with an appropriate capital structure to continue to meet its obligations and execute its future business plans.
"Today begins a new chapter for C&D. We are very pleased that we were able to achieve our financial restructuring quickly and efficiently through this out-of-court process with minimal disruption to our business," said Dr. Jeffrey A. Graves, President and CEO. "The restructuring puts us on solid financial footing as we enter 2011 and it will allow us to take full advantage of our industry leadership position as our markets improve to pre-recession levels and we continue to grow our operations in Asia. C&D has been in business for more than 100 years and it is our goal to serve our customer’s needs, build value for our shareholders and provide a great place to work for our employees for the next 100 and beyond."
Pursuant to the terms of the exchange offer, the participating noteholders (which in the aggregate tendered approximately $125 million of aggregate principal amount of notes out of a total of $127 million of aggregate principal amount of outstanding notes) will be issued their pro rata share of 93.09% of the issued and outstanding Common Stock of the company after the company’s 1:37335:1 forward stock split for the benefit of the existing holders of the company’s common stock has been processed. After completion of the processing of the forward stock split and issuance of post-stock split shares of common stock to the participating noteholders, existing holders of the company’s common stock will hold approximately 6.91% of the company’s outstanding shares of Common Stock after the exchange offer. Both percentages are subject to dilution to the extent securities are issued under the company’s management incentive plans.
