Editions   North America | Europe | Magazine


Danka Announces Completion of $175 Million Senior Notes Offering

Press release from the issuing company

ST. PETERSBURG, Fla.--July 2, 2003-- Danka Business Systems PLC today announced the successful completion of the offering of $175 million in new 11% senior unsecured notes due 2010 and the closing of a $50 million senior secured revolving credit facility that was a condition to the completion of the senior notes offering. The Company used the net proceeds from the new senior notes to repay the remaining $107.1 million of outstanding indebtedness under its existing bank credit facility; and as previously announced, the Company intends to use a portion of the proceeds to redeem $47.6 million of its zero coupon senior subordinated notes due April 1, 2004 at their face value as soon as reasonably practicable. This press release does not constitute a notice of redemption of Danka's zero coupon senior subordinated notes due 2004. The remainder of the net proceeds from the new senior notes will be used for general corporate purposes. The new senior notes have a fixed annual interest rate of 11%, and an 11.5% yield to maturity. The loans under the new credit facility will bear interest at a range of between 175 and 250 basis points over LIBOR, depending on the amount of borrowings outstanding. The Company did not draw on the new credit facility to close the senior notes offering, and is required to maintain $20 million in minimum availability through its three-year life. The offering of the senior notes was made solely by means of a private placement either to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, or to certain persons in offshore transactions pursuant to Regulation S under the Securities Act. The new senior notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

WhatTheyThink is the official show daily media partner of drupa 2024. drupa Event Coverage | drupa daily programs