Ugly Duckling Corp. Announces Exchange Offer
PHOENIX--(BUSINESS WIRE)--Sept. 17, 1998--Ugly Duckling Corp. (Nasdaq/NM:UGLY) Thursday announced an offer to exchange up to $32.5 million principal amount of its 12 percent subordinated debentures due 2003 for up to 5 million shares of its common stock.
Under the terms of the offer, each share of common stock can be exchanged for $6.50 principal amount of debentures. The debentures will bear interest at 12 percent per year, payable semiannually each April 15 and Oct. 15 starting on April 15, 1999, until they are paid in full.
The principal amount of the debentures will be due on the fifth anniversary of their issuance date, subject to prepayment at the company's option without penalty or premium.
The exchange offer will be made only through, and upon the terms and conditions described in, Ugly Duckling's offering circular dated Sept. 17, 1998, and related letter of transmittal. The offer is conditioned upon a minimum of 1 million shares being tendered and is subject to a maximum of 5 million shares being accepted for exchange.
The offer and related withdrawal rights will expire at 5 p.m. New York City time on Oct. 19, 1998, unless extended.
Harris Trust and Savings Bank will act as exchange agent for the offer. Information about the offer can be obtained from Corporate Investor Communications Inc., the designated information agent, at 888/673-4478. |
