NORTH AMERICA HEADLINESNorth America
ALJ Refinances KES Senior Credit Facility, Repurchases Stock, Debt
Jun. 7, 2010 ALJ Regional Holdings, Inc. operating subsidiary KES Acquisition Company has refinanced its senior credit facility and repurchased 6,564 shares of its 13% Series A Preferred Stock at a discount to par, generating future cash savings of approximately $4.6 million.
ALJ also has repurchased a portion of its outstanding subordinated debt at a discount to par, generating future cash savings of approximately $400,000.
The two transactions have generated a total of more than $5.0 million in future cash savings to ALJ, equating to approximately $0.10 per share.
“The continuing profitability of both KES and ALJ have allowed us once again to decrease the company’s debt in a way that sends a strongly supportive message to our shareholders, our customers, our employees and to our suppliers,” commented John Scheel, ALJ’s Chief Executive Officer.
ALJ is the parent company of KES Acquisition Co., which does business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky., producing both merchant bar quality (MBQ) flats, and special bar quality (SBQ) steel flats.