Quality Distribution plans to redeem $9.97 million 11¾% PIK notes

By Melissa Kory

Cleveland, Dec. 21 - Quality Distribution, Inc. announced that its subsidiaries Quality Distribution, LLC and QD Capital Corp. intend to redeem $9,965,000 of their 11¾% senior subordinated payment-in-kind notes due 2013.

The notes will be redeemed on Jan. 20 at par, plus accrued interest to the redemption date.

Additionally, Quality recently acquired or agreed to acquire $2,535,000 of its 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," Joe Troy, executive vice president and chief financial officer, said in the press release.

The issuer is a Tampa, Fla.-based freight company.

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