Transit Group, Atlanta, announced it has taken several steps to restructure debt and recapitalize the company.

The company says it has successfully executed a new, two year, $50 million revolving credit facility with Congress Financial Corp. (Southern), restructured about $100 million in existing bank debt, renegotiated approximately $115 million in equipment debt and leases, and modified $25 million in redeemable preferred stock. Transit Group also announced that it has raised $7 million in proceeds from the issuance of new Series B Preferred Stock.
Transit Group will use part of the funds from the new revolving credit and the Series B stock to repay $26.5 million in existing bank debt. The rest will be amortized over 54 months. On the equipment, some will be returned, while monthly payments will be reduced and the length of the loans increased.
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