New Financing!
Monday March 23, 9:18 am Eastern Time
Company Press Release
Headway Corporate Resources Completes $105 Million in New
Financing
NEW YORK--(BUSINESS WIRE)--March 23, 1998--Headway Corporate Resources Inc. (Nasdaq:HDWY - news)
today announced the completion of $105,000,000 of new financing, comprised of a $75,000,000 syndicated Senior
Credit Facility and $30,000,000 of junior capital.
NationsBank N.A. acted as Agent for the Senior Credit Facility and NationsBanc Montgomery Securities LLC acted as
placement agent for the junior capital, which is comprised of $10,000,000 of Senior Subordinated Notes and
$20,000,000 of Convertible Preferred Stock. The junior capital investment was led by GarMark Partners, LP, a New
York-based private investment fund. The company will use the new capital to refinance existing indebtedness, make
additional acquisitions and for general corporate purposes.
''This financing is a major milestone for Headway. With $105 million in new financing, and such a sophisticated financial
partner as GarMark, the company has the resources it needs to continue its aggressive acquisition program in the
temporary staffing industry,'' said Gary Goldstein, chief executive officer of Headway Corporate Resources. ''In addition,
NationsBanc Montgomery has been a long-standing client of the company, and we are pleased to be completing this
financing with them,'' continued Goldstein.
''The infusion of additional equity capital will strengthen the company's balance sheet and provide the company with
significant capacity for future growth,'' said Barry Roseman, president and chief operating officer of Headway Corporate
Resources. ''We plan to put the proceeds to work almost immediately by closing on three of our recently announced
acquisitions by the end of the first quarter, and the fourth within the next few months, all of which are expected to be
accretive to 1998 earnings,'' continued Roseman.
The company has completed nine acquisitions in four states since it embarked upon its consolidation strategy two years
ago, and is in negotiations with several additional acquisition candidates.
Headway Corporate Resources Inc. is a leading provider of human resources, specializing in the financial services
industry. Headquartered in New York City, Headway Corporate Resources also has offices in North Carolina,
California, Connecticut, United Kingdom, Japan, Hong Kong and Singapore.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information
contained herein, the matters discussed in this press release are forward-looking statements that involve risks and
uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the
company's operations, markets, products and prices, and other factors discussed in the company's various filings with the
Securities and Exchange Commission, including without limitation the Registration Statement of Form S-3 (Registration
No. 333-08615).
Contact:
Headway Corporate Resources Inc., New York
Julie Risi, 212/508-3520
or
Strategic Growth International Inc., Great Neck
Don Weinberger/Richard E. Cooper
516/829-7111 |
