Additional Conversion Rights of Private Debt Offering Announced by Fields Aircraft Spares Inc.; More Capital Raised Abroad
SIMI VALLEY, Calif.--(BUSINESS WIRE)--April 7, 1998--Fields Aircraft Spares Inc. (Nasdaq:FASI) announced that it recently raised approximately $2 million in capital overseas through the sale of 26,333 units consisting of 210,664 common shares, and warrants to purchase an additional 52,666 common shares at a price of $13 per share.
The company has also entered into a First Supplement Indenture, an addendum to its private, $10 million, 8.5% Subordinated Redeemable Debentures offering issued on Sept. 30, 1997, which gives holders the ability to convert an additional 60% of their investment through December 1998. The company previously placed the debt offering in Europe to institutional investors in order to fund expansion.
Specifically, the Supplement grants the Debenture holders the right to convert 20% of their original principal amount, from Feb. 20, 1998 to June 30, 1998, into common shares at a conversion price of $9.75 a share. In addition, through Sept. 30, 1998, holders can convert an additional 20% at a conversion price of $11 a share, and finally, another 20% may be converted at $13 a share through Dec. 31, 1998.
The Debenture holders continue to have a one-time right at any time through Sept. 27, 2000 to convert up to an additional 10% of the original principal amount into the company's common shares at a price equal to 85% of the average closing price of the shares during the 20-trading day period prior to the conversion, but not less than $12 per share.
On Jan. 6, 1998, the company announced that it previously exercised its option to convert 20%, or $2 million principal amount of the Debentures. 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: "This conversion will increase our net asset base as we pursue an aggressive strategy of acquisitions and will, of course, reduce our annual interest expense quite dramatically. We also trust that this conversion shows the confidence that the European institutional investment community has in Fields."
Fields Aircraft, through its wholly owned subsidiaries Fields Aircraft Spares Inc. and Fields Aero Management Inc., is a manufacturer and 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 at fieldsair.com.
Statements in 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 1933, 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, including the ability to complete contemplated acquisitions and to successfully combine the businesses, 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.
CONTACT: Fields Aircraft Spares Inc., Simi Valley
Alan Fields, 805/583-0080
or
Coffin Communications Group, Sherman Oaks
Michael S. Manahan, 818/789-0100 |
