Ugly Duckling Corp. Announces Supplemental Exchange Offer
PHOENIX--(BUSINESS WIRE)--Nov. 23, 1998--Ugly Duckling Corp. (Nasdaq/NM:
UGLY - news) Monday announced an offer to exchange up to $16,486,582
principal amount of its 12 percent Subordinated Debentures due 2003 for
up to 2,536,397 shares of its common stock.
On Oct. 19, 1998, the company successfully completed a prior exchange
offer of subordinated debentures for 2,463,603 shares of its common
stock.
This exchange offer is being made on substantially the same terms as the
prior exchange offer, and the debentures issued under this offer will be
identical to those offered under the previous offer.
Commenting on the supplemental exchange offer, Chairman and Chief
Executive Officer Ernest C. Garcia II stated: ''Among other reasons, we
felt it was appropriate to allow investors another chance to evaluate
the opportunity to exchange their shares of our common stock for these
debentures in light of our recent decision to change the structure of
our future securitizations.''
Under the terms of the new exchange offer, each share of common stock
can be exchanged for $6.50 principal amount of debentures. The
debentures will bear interest at 12 percent per year from Oct. 23, 1998,
payable semi-annually each April 15 and Oct. 15 starting on April 15,
1999, until they are paid in full.
The principal amount of the debentures will be due on Oct. 23, 2003,
subject to prepayment at the company's option without penalty or
premium.
The exchange offer will be made only through, and upon the terms and
conditions described in the company's Offering Circular, dated Nov. 20,
1998, and related letter of transmittal. The company will accept a
maximum of 2,536,397 shares in the exchange offer. The offer and related
withdrawal rights will expire at 5 p.m. Eastern Time on Tuesday, Dec.
22, 1998, unless extended.
Harris Trust Co. of New York will act as exchange agent for the offer.
Information about the offer can be obtained from Corporate Investor
Communications Inc., the designated information agent, at 888/673-4478
(toll free). |
