NCI Holdings, Inc. and Nationwide Credit, Inc. (Nationwide) today announced the completion of a corporate refinancing effort that will result in Nationwide having one of the strongest balance sheets in the industry.
“Nationwide traditionally has led the accounts receivable industry as a top performer serving major financial institutions, but lacked the capital structure needed to compete in today’s marketplace. Since its acquisition on Dec. 31, 1997, the company has maintained a strong operations base, however, the original purchase terms were such that the current re-capitalization was required,” said Nationwide President and CEO Michael Lord. The refinancing includes the exchange of the outstanding 10-1/4% senior notes due 2008 for common stock of NCI Holdings, Inc. and the investment in the company of $7 million of new mezzanine financing by Nationwide Inflection LLC. Nationwide Inflection LLC was a major holder of the bonds before the exchange. Total debt will be reduced from $130 million to $30 million following the refinancing.
Terms of the existing bank finance have been revised so that Nationwide Inflection LLC will provide the Tranche B and C term loans, previously provided by the banks, on substantially the same terms; however, there will be no payment of principle until the maturity date of June 30, 2005. The revolving credit line will continue to be provided by the existing banks on substantially the same terms and availability as before. Nationwide Inflection LLC is the acquisition vehicle set up by Bayshore Capital of Toronto and Triton Partners Inflection Fund of New York. Bayshore is a private investment firm with extensive prior holdings in the financial services industry, and Triton structures and invests in recapitalizations and other special situations. “The Nationwide Inflection team is aggressive and well-positioned with an impressive track record serving leading financial services and computer companies. Their timing is on target as recession delinquencies continue to increase, consumer debt is at historic highs, and demand for collections support is strong,” said Lord. Nationwide is one of the leading accounts receivable management companies in the United States. For additional information, call 770-644-7452.
