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."
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