Danielson Holding Corporation Acquires American Commercial Lines; Danielson Announces Completion of Rights Offering
JEFFERSONVILLE, Ind. and NEW YORK, May 29 /PRNewswire-FirstCall/ -- American Commercial Lines LLC (ACL) and Danielson Holding Corporation (Amex: DHC - News) today announced the completion of the acquisition of ACL by Danielson.
Danielson's President and Chief Operating Officer, David M. Barse, said, "We are extremely excited about successfully completing the ACL acquisition and related restructuring. This acquisition resulted from a great deal of effort examining numerous potential deals and patience in the process. We look forward to working with ACL's strong management team to continue growing their business."
ACL's President and Chief Executive Officer, Michael C. Hagan, said, "We believe this restructuring will position our company for future growth and will benefit our customers, employees, noteholders and vendors. In addition, as a wholly-owned subsidiary of Danielson, we believe we will have better access to capital markets should the right opportunity present itself."
In connection with the transactions, ACL has completed its exchange offer for its 10-1/4% Senior Notes due June 30, 2008 ("Existing Senior Notes"). As previously announced, $284.5 million, or approximately 96.4%, of the Existing Senior Notes were tendered in the exchange offer. Holders of Existing Senior Notes who tendered their Existing Senior Notes pursuant to the exchange offer received approximately $134.7 million aggregate principal amount of 11-1/4% Senior Notes due January 1, 2008 and approximately $112.9 million aggregate principal amount of 12% pay-in-kind Senior Subordinated Notes due July 1, 2008. $10.5 million of the Existing Senior Notes will remain outstanding. In addition, ACL's existing senior credit facility was amended and restated to, among other things, reduce term loans thereunder by $25 million, resulting in outstanding debt under the senior credit facility of approximately $372 million.
Also, in connection with these transactions, Danielson has successfully completed its previously announced rights offering. The rights offering closed today and raised gross proceeds before expenses of approximately $43.5 million, with 8,705,219 shares of common stock being issued at an exercise price of $5.00 per share. Danielson contributed $25.0 million, which was used to reduce borrowings under ACL's senior credit facility as described above, and approximately $58.5 million of Existing Senior Notes to ACL Holdings in connection with the transactions. |
