Danka Extends Exchange Offer Again For Convertible Subordinated Notes
Press release from the issuing company
St. Petersburg, March 21, 2001 - Danka Business Systems PLC (NASDAQ: DANKY) (the "Company" or "Danka") today announced the extension of its exchange offer for all $200 million of its outstanding 6.75% convertible subordinated notes due April 1, 2002.
The expiration date for the exchange offer has been extended from 5:00 p.m., New York City time, on March 20, 2001, to 5:00 p.m., New York City time, on April 30, 2001. The Company said all other terms of the offer remain unchanged. As anticipated, the registration statement filed by the Company in connection with the exchange offer is subject to the review process of the Securities and Exchange Commission.
The exchange offer is subject to certain conditions, including participation by holders of at least 95% of the 6.75% convertible subordinated notes, the refinancing of Danka's existing senior bank debt, and the sale of Danka's outsourcing subsidiary, Danka Services International ("DSI"). The Company anticipates that it will close the exchange offer, the refinancing of the senior bank debt, and the sale of DSI during its next fiscal quarter. The complete terms of the offer are contained in the Preliminary Prospectus and Exchange Offer dated February 20, 2001.
The Company said that as of 5:00 p.m., New York City time, on March 20, 2001, it had received tenders from holders of $89,333,000 in aggregate principal amount of the 6.75% convertible subordinated notes, representing approximately 44.7% of the outstanding 6.75% convertible subordinated notes. Of the notes tendered pursuant to the offer, $31,306,000 principal amount was tendered for the cash option, $751,000 principal amount was tendered for new 9% note option, and $57,276,000 principal amount was tendered for new 10% note option.
Danka's Chief Executive Officer, Lang Lowrey, commented: "We are very encouraged by the participation to date in the exchange offer by the noteholders."
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