Quality Distribution, LLC And QD Capital Corporation Announce Redemption Of $9.97 Million Of 11.75% Senior Subordinated PIK Notes Due 2013
TAMPA, Fla., Dec. 21, 2010 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. (Nasdaq:QLTY) ("Quality") announced today that its wholly owned subsidiaries, Quality Distribution, LLC ("QD LLC") and QD Capital Corporation ("QD Capital" and, together with QD LLC, the "Issuers") intend to redeem a portion of their 11.75% Senior Subordinated PIK Notes due 2013 (the "2013 PIK Notes"). The Issuers have issued a notice of redemption pursuant to the indenture for the 2013 PIK Notes stating that they intend to redeem $9,965,000 aggregate principal amount of such 2013 PIK Notes on January 20, 2011 (the "Redemption Date"). The redemption price for the 2013 PIK Notes will be equal to 100% of the principal amount of the 2013 PIK Notes plus accrued and unpaid interest thereon to the Redemption Date.
Additionally, Quality recently acquired or agreed to acquire $2,535,000 of its 2013 PIK Notes through open market purchases.
"With the execution of our November 2010 refinancing transaction we gained significant flexibility to utilize our free cash flow and revolver capacity to reduce higher cost debt," commented Joe Troy, Executive Vice President and Chief Financial Officer. "Given our strong liquidity position, it was an opportune time to reduce our cost of capital and improve our debt profile."This press release does not constitute an offer to sell or a solicitation of an offer to buy any security, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. 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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