July 14, 2016 / 11:17 AM / in a year

BRIEF-Colabor Group announces comprehensive recapitalization transactions

July 14 (Reuters) - Colabor Group Inc :

* Colabor Group announced comprehensive recapitalization transactions to strengthen its balance sheet and reduce future interest costs

* Recapitalization transactions will allow Colabor to reduce its level of indebtedness by approximately $47.5 million

* Of proceeds from rights offering, $17.5 million will be used to reduce corporation’s subordinated loan

* Extension for 3 years of current senior credit facilities, reduction of outstanding balance by approximately $30 million

* Says recapitalization transaction to extend maturity date of all debt by 3 to 5 years

* Of proceeds from rights offering approximately $30 million will be used to pay amounts outstanding under credit facilities

* Recapitalization transactions will allow Colabor to extend maturity date of all debt by 3 to 5 years

* Zucker currently holds about 11.8% of outstanding common shares and approximately 2.6% of outstanding convertible debentures

* As a result of recapitalization transactions, Zucker may hold up to approximately 17.8% of outstanding common shares. Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)

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