Quality Distribution, LLC And QD Capital Corporation Announce Pricing Of $225,000,000 Debt Offering
TAMPA, Fla., Nov. 2, 2010 (GLOBE NEWSWIRE) -- On October 26, 2010, Quality Distribution, Inc. (Nasdaq:QLTY) ("Quality") announced the intent of its wholly owned subsidiaries, Quality Distribution, LLC ("QD LLC") and QD Capital Corporation ("QD Capital" and, together with QD LLC, the "Issuers") to offer Second–Priority Senior Secured Notes due 2018.
On November 1, 2010, the Issuers priced $225,000,000 aggregate principal amount of 9.875% Second-Priority Senior Secured Notes due 2018 at an issue price of 99.324%.
The Issuers intend to use the net proceeds from the offering to fully redeem all of the Issuers' outstanding 10% Senior Notes due 2013, 9% Senior Subordinated Notes due 2010, and Senior Floating Rate Notes due 2012, each of which may be redeemed at par, plus accrued and unpaid interest, pursuant to a satisfaction and discharge. The Issuers also intend to apply proceeds to redeem at par, plus accrued and unpaid interest, the principal amount of their 11.75% Senior Subordinated PIK Notes due 2013 sufficient to reduce the outstanding principal amount of such 11.75% Senior Subordinated PIK Notes due 2013 to $35.0 million. The balance of the proceeds, after paying fees and expenses of this note offering, would be used to pay down outstanding borrowings under the ABL Facility."I am very pleased with the execution of this important refinancing transaction," said Gary Enzor, Chief Executive Officer of Quality. "We have reset our long-term capital structure that effectively increases operational flexibility, eliminates off-market covenants, extends our debt maturity profile and further enhances our already ample liquidity position. Quality's balance sheet is now much more strongly positioned to support our business strategy and growth plans going forward." About Quality Headquartered in Tampa, Florida, Quality operates the largest chemical bulk tank truck network in North America through its wholly-owned subsidiary, Quality Carriers, Inc., and is the largest North American provider of intermodal tank container and depot services through its wholly-owned subsidiary, Boasso America Corporation. Quality Carriers' network of independent affiliates and independent owner-operators provides nationwide bulk transportation and related services. Quality is an American Chemistry Council Responsible Care® Partner and is a core carrier for many of the Fortune 500 companies that are engaged in chemical production and processing.
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