Electronic Cigarettes International Group Complete
Post# of 497
Posted On: 07/08/2016 1:02:14 PM
Electronic Cigarettes International Group Completes Financial Recapitalization
Company Refinanced $94 million of Senior Notes and Convertible Debt
Reduced All Debt Interest Rates to 4%
Postponed All Debt Payments for 4 years
Cancelled and Reissued Employee Stock Options
PR Newswire Electronic Cigarettes International Group, Ltd.
3 hours ago
http://finance.yahoo.com/news/electronic-ciga...00665.html
GOLDEN, Colo., July 8, 2016 /PRNewswire/ -- Electronic Cigarettes International Group, Ltd. (The "Company"
(ECIG), a leading global marketer and distributor of electronic cigarettes and vapor products, today announced the completion of its financial recapitalization. The Company worked closely with both senior secured and convertible note holders to agree to the Company's recapitalization plan that reduced interest rates from 12% and 8%, respectively, down to 4%. In addition, all principal payments to both senior secured and convertible holders are postponed for four years to June 30, 2020.
Dan O'Neill, Chief Executive Officer of Electronic Cigarettes International Group, stated, "The recapitalization represents significant progress for the Company by alleviating interest payment pressure in the immediate term, and infusing an additional $4 million of capital into the business, significantly increasing the runway to drive profitable growth in the future. Debt holders with senior secured positions relinquished their senior positions to ensure all others would participate in the recapitalization. We are thankful to our stakeholders who have demonstrated continued belief in ECIG and support of the strategic plan and our profitable growth potential."
The company's senior secured debt represented $74 million with an interest rate of 12%. Under the new agreement, the debt increases to $78 million with an interest rate of 4%. In addition, all principal payments are not due until June 30, 2020. The $4 million cash infusion was obtained to capitalize on potential growth opportunities in the category globally.
The company's convertible debt represented $20 million with an interest rate of 8%. Under the new agreement, the debt also has an interest rate of 4%. In addition, all principal payments are not due until June 30, 2020.
The Company has also cancelled employee stock options and reissued new options with the objective of retaining and motivating the current management team.
Company Refinanced $94 million of Senior Notes and Convertible Debt
Reduced All Debt Interest Rates to 4%
Postponed All Debt Payments for 4 years
Cancelled and Reissued Employee Stock Options
PR Newswire Electronic Cigarettes International Group, Ltd.
3 hours ago
http://finance.yahoo.com/news/electronic-ciga...00665.html
GOLDEN, Colo., July 8, 2016 /PRNewswire/ -- Electronic Cigarettes International Group, Ltd. (The "Company"
(ECIG), a leading global marketer and distributor of electronic cigarettes and vapor products, today announced the completion of its financial recapitalization. The Company worked closely with both senior secured and convertible note holders to agree to the Company's recapitalization plan that reduced interest rates from 12% and 8%, respectively, down to 4%. In addition, all principal payments to both senior secured and convertible holders are postponed for four years to June 30, 2020. Dan O'Neill, Chief Executive Officer of Electronic Cigarettes International Group, stated, "The recapitalization represents significant progress for the Company by alleviating interest payment pressure in the immediate term, and infusing an additional $4 million of capital into the business, significantly increasing the runway to drive profitable growth in the future. Debt holders with senior secured positions relinquished their senior positions to ensure all others would participate in the recapitalization. We are thankful to our stakeholders who have demonstrated continued belief in ECIG and support of the strategic plan and our profitable growth potential."
The company's senior secured debt represented $74 million with an interest rate of 12%. Under the new agreement, the debt increases to $78 million with an interest rate of 4%. In addition, all principal payments are not due until June 30, 2020. The $4 million cash infusion was obtained to capitalize on potential growth opportunities in the category globally.
The company's convertible debt represented $20 million with an interest rate of 8%. Under the new agreement, the debt also has an interest rate of 4%. In addition, all principal payments are not due until June 30, 2020.
The Company has also cancelled employee stock options and reissued new options with the objective of retaining and motivating the current management team.
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