Danielson Holding Corporation Commences $43,526,095 Rights Offering
NEW YORK, April 22 /PRNewswire-FirstCall/ -- Danielson Holding Corporation (Amex: DHC - news) today announced that it commenced on April 19, 2002 a $43,526,095 rights offering for up to 8,705,219 shares of its common stock. The proceeds from the rights offering will be used in connection with the previously announced proposed acquisition and comprehensive restructuring of American Commercial Lines LLC (``ACL'') and American Commercial Lines Holdings LLC, the parent of ACL (``ACL Holdings'').
Under the terms of the rights offering, Danielson has distributed at no charge one non-transferable warrant with respect to each share of Danielson common stock outstanding as of April 19, 2002. In addition, Danielson has distributed at no charge one non-transferable warrant with respect to each share of Danielson common stock underlying outstanding warrants to purchase its common stock as of April 19, 2002, contingent on each such holder fully exercising its outstanding warrants upon completion of the rights offering. Holders of warrants will be entitled to purchase 0.4 shares of Danielson common stock for every warrant held at an exercise price of $5.00 per share. Holders of warrants may also purchase additional shares at the exercise price if any of the warrants are not fully exercised. The rights offering will expire at 5:00 p.m., New York City time, on May 20, 2002, unless Danielson decides, in its sole discretion, to extend the expiration date. A prospectus supplement is being distributed to all holders of common stock, which contains a description of the terms and conditions of the rights offering and other relevant information. Danielson's obligation to consummate the rights offering is subject to, among other conditions, the consummation of the restructuring of ACL and ACL Holdings.
In connection with the rights offering, Danielson entered into an agreement with SZ Investments, L.L.C. (``SZ Investments''), the holder of approximately 18.0% of its common stock on a fully diluted basis, pursuant to which SZ Investments agreed to purchase shares of Danielson common stock offered in the rights offering and not purchased pursuant to the rights offering, up to a maximum total investment by SZ Investments pursuant to the backstop of $20,000,000. |
