Applied Graphics Technologies Announces Sale Of Publishing Business
Press release from the issuing company
NEW YORK, April 15 -- Applied Graphics Technologies announced today that it sold its publishing subsidiary, Portal Publications Ltd., to Lynx Private Equity II, L.P., an affiliate of Carl Marks & Co. Inc. The net proceeds from the sale were approximately $33.5 million, of which $31.5 million will be used to repay term loans outstanding under the Company's credit facility and $2.0 million will be held in escrow under the terms of the sale. The escrow will be used to satisfy any claims related to the working capital transferred at closing as well as normal, contractual warranties. Any remaining escrow balance as of March 31, 2003, will be used to further repay the outstanding term loans.
The sale of the publishing business satisfied a contingency the Company had under its credit agreement related to the sale of certain non-core assets, and accordingly resulted in an immediate reduction in interest rates of 100 basis points. For the year ended December 31, 2001, the operations of the publishing business generated approximately $77.8 million of revenue and approximately $8.1 million of operating income.
Additional information about Applied Graphics Technologies can be obtained by visiting the AGT website: http://www.agt.com.
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