Quality Distribution to redeem notes due 2010, 2012, 2013 on Dec. 3

By Melissa Kory

Cleveland, Nov. 8 - Quality Distribution, LLC and QD Capital Corp. sets Dec. 3 as the redemption date for their previously announced refinancing of several series of notes.

The date comes at the end of the 30-day notification period required under the indentures.

Quality Distribution noted that during the 30-day period from Nov. 3 through Dec. 3 it will incur interest expense on both its new $225 million of 9 7/8% second-priority senior secured notes due 2018, which settled on Nov. 3, and the existing debt.

As previously announced, the companies will fully redeem their outstanding 9% senior subordinated notes due 2010, senior floating-rate notes due 2012 and 10% senior notes due 2013. They will also redeem enough of the 11¾% senior subordinated payment-in-kind notes due 2013 to reduce the balance of the notes to $35 million.

Funding will come from the new 9 7/8% notes. The 2018 notes were priced at 99.324 to yield 10% on Nov. 1.

The 2010, 2012 and 2013 notes as well as the payment-in-kind notes will be redeemed at par plus accrued interest.

The balance of the proceeds from the 2018 notes offering were used to pay down the company's ABL facility.

Quality Distribution, LLC and QD Capital Corp. are subsidiaries of Quality Distribution, Inc., a Tampa, Fla.-based provider of bulk transportation and related 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.