Fields Aircraft Spares Initiates Conversion of 20 percent of $10 Million Private Debt Offering
SIMI VALLEY, Calif.--(BUSINESS WIRE)--Jan. 6, 1998--Fields Aircraft Spares Inc. (Nasdaq: FASI - news) announced today that it recently exercised its option to convert 20 percent, or $2,000,000 principal amount, of a private, $10,000,000, 8.5 percent subordinated debenture offering it issued on Sept. 30, 1997.
The company previously placed the offering in Europe, through Establissement Pour le Placement Prive serving as Trustee, to fund expansion. Specifically, the debentures being converted are convertible into 83 1/3 shares, per $1,000 principal amount of the debentures, of the company's common stock at $12.00 per share. Although the company's common stock closed at $10.50 on Nov. 14, 1997, the average price over the 20-day period ended Nov. 5, 1997 was above $12.00, a provision necessary to trigger conversion.
The remaining debentureholders will have a one-time right at any time after Dec. 29, 1997 through Sept. 27, 2000 to convert up to an additional 10 percent of the principal amount into the company's common stock at a conversion price equal to 85 percent of the average closing price of the stock during the 20-trading day period prior to the conversion, but at not less than $12.00 per share. The debentures are redeemable, in whole or in part, at the option of the company, at any time after March 31, 1999.
Alan Fields, president of Fields Aircraft, stated, ''The impact on our bottom line from this conversion is tremendous. Interest and amortization of loan costs will be reduced by $170,000 and $82,000 per year, respectively. The conversion of debt to equity also strengthens our balance sheet. Finally, the increased equity should enhance our ability to complete potential acquisitions.''
Fields Aircraft Spares Inc., through its wholly owned subsidiaries Fields Aircraft Spares Inc. and Fields Aero Management Inc., is a leading distributor of aircraft cabin interior replacement products and is a broker for a wide variety of factory new parts applicable to various commercial aircraft models and manufacturers. Additional information about Fields, including access to copies of its periodic filings with the Securities and Exchange Commission, is available on the Company's web site: fieldsair.com
Statements is this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements as a result of a number of factors, including but not limited to competitive factors and pricing pressures, ability to obtain necessary capital or financing, the price and availability of aircraft parts and other materials, successful execution of the company's expansion plans, failure to maintain existing customer or vendor relationships, shifts in market demand, general economic conditions and other risks and uncertainties discussed in periodic reports filed by the company with the Securities and Exchange Commission and which the company urges investors to consider. Copies of filed reports may be requested from the company or obtained from the company's web site.
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Contact:
Fields Aircraft Spares Inc.
Alan Fields, 805/583-0080
or
Coffin Communications Group
Michael S. Manahan, 818/789-0100 |
