FleetPride Corporation announced that it is undertaking to arrange a new senior secured credit facility. It is contemplated that the New Credit Facility will be in the aggregate amount of up to $430 million, to consist of: a new five-year, up to $60.0 million revolving credit facility and a new six-year, $370.0 million term loan.
The proceeds of the New Credit Facility, if entered into, are contemplated to be used to refinance all outstanding indebtedness under FleetPride’s existing senior secured credit facilities, call for redemption all of the outstanding 11 ½ percent Senior Notes due 2014 of FleetPride, which are currently callable at a 102.875 percent of the principal amount thereof plus accrued and unpaid interest as of the redemption date, call for redemption all of the outstanding Senior Discount Notes due 2015 of FPC Holdings, Inc., which are currently callable at a 103.000 percent of the accreted value thereof plus accrued and unpaid interest as of the redemption date, and pay fees and expenses related thereto and for general corporate purposes.
It is contemplated that the New Credit Facility will close and the refinancings will take place in the fourth quarter of 2011.
