Heafner completes stock buy-back
Heafner Tire Group Inc., which tendered a purchase offer in February to buy back up to $126 million in outstanding bonds, has completed the buy-back.
The retirement of $121.4 million in senior notes is part of a financial restructuring that "strengthens the company and gives us greater finanacial flexibility to better serve our customers," says Dick Johnson, Heafner's CEO and president.
Heafner purchased $121.4 million of its 10% Senior Notes Due 2008, Seires D, through a modified Dutch auction procedure for a $535 per $1,000 principal amount, plus accrued but unpaid interest.
The completed tendor offer, which was amended on March 11, reduces Heafner's long-term debt by 32%, according to the company. It also will reduce the company's annual interest expense by close to $8 million.
The debt retirement increases shareholder equity, including redeemable preferred stock, by some $59 million to $18 million, marking the first time Heafner Tire Group's shareholder equity has been positive since 2000.
"I'm pleased that we have been able to accomplish one of my top goals: to boost shareholder equity back into positive territory," says Johnson.
Heafner Tire Group operates 62 distribution centers in the United States. The centers service all or parts of 35 states.
The financial restructuring resulted in $121.4 million, which leaves the Charlotte, N.C.-based company in good financial shape, according to CEO Dick Johnson