| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Encompass Services Corp. > News item |
Encompass Services receives waiver on credit facility through Oct. 15
By Sara Rosenberg
New York, Oct. 1 - Encompass Services Corp. received a waiver from its senior lenders, relieving the company from compliance with covenants through Oct. 15. The company expects to be unable to comply with financial covenants as of Sept. 30 due to the unlikelihood of successfully completing its previously announced rights offering and the decision not to reduce the amount drawn under its revolver as of Sept. 30.
Initially, Encompass planned to issue $72.5 million in equity and Apollo Investment Fund IV LP had agreed to purchase $35 million of the equity offering.
Currently, the company is exploring options to restructure and/or reduce debt and has appointed Houlihan Lokey Howard Zukin Capital as financial advisor to review these options. Some of the options would result in the termination of the rights offering and the cancellation of the upcoming special meeting of shareholders scheduled for Oct. 15, at which shareholder approval of the Apollo investment is being requested.
"We appreciate the continued support of our senior lenders," said Joe Ivey, president and chief executive officer, in a news release. "We also appreciate the ongoing support that we have received from our employees, vendors, customers and surety providers. We remain committed to finding an appropriate solution to strengthen our financial position."
Due to these events, the company is withdrawing all forecasts and financial guidance, including its revenue and EBITDA guidance, and has terminated its Employee Stock Purchase Plan.
Encompass Services is a Houston, Tex. provider of facilities systems and services.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.