Wednesday July 2 9:21 AM EDT
Company Press Release
DDL Electronics pays off $5.3 million notes
DDL also agrees to acquire a contract manufacturing company
NEWBURY PARK, Calif.--(BUSINESS WIRE)--July 1, 1997--DDL Electronics Inc. (NYSE:DDL) Tuesday announced
that it has repaid in full its 10 percent senior secured notes due July 1, 1997, in the aggregate amount of $5.3 million.
To raise a portion of the funds needed to pay off the senior notes, DDL borrowed $2 million from a private investor on June
30, 1997, under an 8 percent promissory note which is convertible into DDL common stock at 75 cents per share. The
shares which are issuable upon conversion have registration rights, but are subject to a three-month lock-up period.
The convertible note matures Aug. 31, 1998, and is secured by a pledge of all of the outstanding shares of SMTEK Inc.,
DDL's U.S. operating subsidiary. DDL also agreed to give the investor two seats on its seven-person board of directors.
Concurrent with entering into the convertible note, DDL agreed to acquire a privately held electronics contract manufacturing
company in Florida that is controlled by the investor for 9 million shares of DDL's common stock. This acquisition is subject
to the approval of DDL's stockholders and to obtaining a fairness opinion on the transaction.
DDL is an independent provider of electronic manufacturing services (EMS) for electronic equipment manufacturers. DDL
also manufactures printed circuit boards (PCBs) for use primarily in the computer, communications and instrumentation
industries. Its EMS facilities are located in Southern California and in Northern Ireland, and its PCB facilities are located in
Northern Ireland.
Certain statements made above are forward-looking in nature and reflect DDL's current expectations and anticipated future
plans. Such statements involve various risks and uncertainties that could cause actual results to differ materially from those
forecast in the statements.
Factors that might cause such differences would include, without limitation, the factors described as ``Risk Factors'' in DDL's
Registration Statement on Form S-3 (No. 333-02969) on file with the Securities and Exchange Commission. |
