Mon, Jun 21, 2010
Company Says "Several Issues" With Lenders Resolved
Ballistic Recovery Systems (BRS) of South St. Paul, MN
announced Friday that it completed a capital restructuring totaling
$1.8 million in a combination of debt and equity. High F Inc., a
private fund based in Miami, Florida, completed a series of
investments in the Company, including the purchase of the Company's
bank debt and restructured its existing debt notes in a transaction
that includes new senior secured debt facilities and equity.
"By completing the restructuring, we have resolved several
outstanding issues with our lenders and achieved the goals of
strengthening our balance sheet, reducing our cost of capital, and
establishing a debt payment schedule consistent with the Company's
cash flow generation," stated Larry E. Williams, President and CEO
of BRS. "Over the last several months we have enhanced our cash
flow and made important progress in improving the Company's balance
sheet. By restructuring our capital we will be able to use our cash
flow and enhanced access to financing to help fund the rapid
expansion we are experiencing. Over the last six months, we have
seen consistent improvement in revenue and cash flow, crowned by
successive record sales for the Company in the last two months.
With the decisive support of our largest shareholder, High F, we
have eased the daily working capital pressure we have been
experiencing. This now allows us to focus confidently on delivering
on our strong growth prospects and profitability goals."
The transaction with High F includes new senior secured debt
facilities and equity, whereby High F became the largest
shareholder in BRS. In addition to facilitating a substantial
increase to the Company's existing receivables financing
arrangements, the new capital structure will allow BRS to seek
further secured debt financing through commercial banks or SBA loan
programs. The Company intends to use the proceeds from future
financing to fund working capital and investments related to the
growth in its operations.
"The investments by High F over the last six months, including
new equity, reflects a strong commitment on their part, as we focus
on growing both our top and bottom lines," Williams added. "We are
pleased with our investors' confidence in our management team and
its ability to execute our strategy to become a significant player
in the aerospace and defense industry."
More News
Aero Linx: Model Aeronautical Association of Australia MAAA clubs are about fun flying, camaraderie and community. For over 75 years, the MAAA has been Australia’s largest fl>[...]
Touchdown Zone Lighting Two rows of transverse light bars located symmetrically about the runway centerline normally at 100 foot intervals. The basic system extends 3,000 feet alon>[...]
“Discovery and innovation are central to our mission at Virgin Galactic. We’re excited to build on our successful record of facilitating scientific experiments in subor>[...]
How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]
Student Pilot Reported That During Rotation, “All Of A Sudden The Back Of The Plane Kicked To The Right..." Analysis: The student pilot reported that during rotation, “>[...]