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CSL Completes Sale of 51% Stake, RetiresOutstanding Convertible Debt and Receives Working Capital Infusion
March 4, 1999 12:36 PM
VALENCIA, Calif.--(BUSINESS WIRE)--March 3, 1999--CSL Lighting Manufacturing Inc. d.b.a. Creative Systems Lighting CSLX Wednesday announced that it has completed a private placement of 1,191,752 shares of its common stock, representing 51% of its outstanding shares, to Interiors Inc. INTXA .
The total consideration received by the company was approximately $2 million or $1.68 per share, and consisted of $600,000 in cash and the cancellation of approximately $1.4 million of outstanding convertible subordinated debt and related charges.
In conjunction with the transaction, Interiors and CSL entered into a standstill agreement and CSL expanded its board of directors to seven members, including three designees of Interiors. Pursuant to the standstill agreement, for a period of 150 days, Interiors and its affiliates are prohibited from acquiring any shares of CSL common stock, which would increase Interiors holdings above 51%
Interiors is a leading designer, manufacturer and marketer of a broad range of decorative accessories for the residential, commercial, institutional and contract markets. Interior's offerings include a wide range of products including decorative lighting, table lamps, framed art, mirrors, and decorative tabletop accessories. Interiors customers include furniture stores and home furnishings centers, catalogue retailers, home improvement centers, department stores and lighting retailers.
Mark Allen, chief executive officer of CSL, stated, "Having Interiors as a strategic and financial partner presents a significant opportunity to both continue offering innovative, high quality lighting products to our existing customer base and also expand our product offerings into other avenues of distribution. We anticipate exploring with Interiors opportunities to cross market our product offerings through our respective distribution channels. We are confident that this transaction will improve our operating efficiencies and result in enhanced shareholder value," Allen added.
Creative Systems Lighting designs, manufactures and markets performance engineered lighting fixtures for commercial and residential applications on a worldwide basis. In addition to its domestic operations, CSL currently has distribution and joint venture agreements in China, Hong Kong, Singapore, Malaysia, Philippines, Oman, Taiwan and Vietnam. |
