Stock Market & Financial Investment News

News Breaks March 11, 2013 08:59 EDT CEDC CEDC launches amended exchange offer with support of Roust Trading Central European Distribution Corporation announced late Friday that the company and its subsidiary, CEDC Finance Corporation International, have amended their exchange offers, commenced on February 25, to reflect terms agreed to and supported by the company, Roust Trading Ltd., a major investor in the company, and a Steering Committee of holders of approximately 30% of the outstanding principal amount of CEDC FinCo's Senior Secured Notes due 2016. The exchange offers contemplate a financial restructuring that will reduce CEDC's and CEDC FinCo's debt by up to approximately $635M. The company believes that a successful restructuring will improve its financial strength and flexibility and enable it to focus on maximizing the value of its strong brands and market position. The restructuring is expected to have no effect on CEDC's operations in Poland, Russia, Hungary or Ukraine, the company said. Under the terms of the amended exchange offers, which expire at 11:59 PM, New York City Time, on March 22: RTL will acquire 85% of the equity of CEDC in exchange for (i) $172M in cash, the proceeds of which will be paid by CEDC to holders of the Senior Secured Notes due 2016, and (ii) the compromise of a $50M secured credit facility previously provided by RTL to CEDC; Holders of the Senior Secured Notes due 2016 who tender their Notes will receive (i) the option to receive a total of $172M in cash, from the proceeds of the RTL investment, pursuant to a "Dutch Auction" procedure and (ii) to the extent not accepted in the Cash Option or at the option of individual holders, their pro rata share of (a) new secured notes due 2018 in the aggregate principal amount of $450M and (b) new convertible secured notes due 2018 in the aggregate principal amount of $200M; Holders of CEDC's 3.00% Convertible Senior Notes due March 15, 2013 who tender their Notes, and RTL, as holder of $20M principal amount of unsecured notes, together will receive their pro rata share of 10% of the equity in CEDC; and CEDC's existing stockholders will have their stock holdings diluted to 5% of the equity in CEDC. News For CEDC From The Last 14 Days Check below for free stories on CEDC the last two weeks. Sign up for a free trial to see the rest of the stories you've been missing. There are no results for CEDC Sign up for a free trial to see the rest of the stories you've been missing.