Key Developments For American Commercial Lines Inc.
American Commercial Lines Inc. (ACLI.O) (Nasdaq)
American Commercial Lines Inc. Closes Inquiry Involving American Commercial Lines
American Commercial Lines Inc. announced that the U.S. Securities and Exchange Commission (SEC) has confirmed it will not take action against the Company and has closed an inquiry related to an e-mail sent by the Company's former Senior Vice President and Chief Financial Officer on June 16, 2007 and disclosed by the Company in the filing of a Form 8-K on June 18, 2007. The executive ceased being an employee of ACL in March 2008. The Commission has issued a cease and desist order, consented to by the former employee, mandating that he not violate Regulation FD in the future.
American Commercial Lines Inc. Announces Realignment of Its Transportation Services Division
American Commercial Lines Inc. announced that it is realigning its Transportation Services Division to reduce costs, improve efficiencies, and streamline communication. The Company will be moving leaders in operations management to field locations, closer to its employees and customers. Headquartered in Jeffersonville, IN, ACL operates a fleet of more than 2,600 barges and approximately 130 towboats on a network of more than 12,000 miles of U.S. inland waterways. It also operates terminals, as well as fleeting, shifting, cleaning, and barge and boat repair services throughout its network. The Company is realigning its Transportation Services business into two regional divisions. The Southern Division, based in Harahan, LA, will include the Company's network south of Baton Rouge, LA, which is located at mile marker LM237. The Northern Division, based in Cairo, IL, will include the Company's network north of Baton Rouge, LA.
American Commercial Lines Inc.'s Commercial Barge Line Company Completes Private Placement of Senior Secured Notes and New Asset-based Lending Facility
Commercial Barge Line Company (CBLC), a direct wholly owned subsidiary of American Commercial Lines Inc., announced that CBLC completed the previously announced private placement of $200 million senior secured second lien notes due in 2017 (the Notes). The Notes will be guaranteed by ACL and by certain of CBLC's existing and future domestic subsidiaries. The Notes have an interest rate of 12-1/2% and were sold at 95.181% of the aggregate principal amount, for gross proceeds of approximately $190 million, representing a yield to maturity of 13.50%. In connection with the issuance of the Notes, CBLC entered into a four-year senior secured first lien asset-based revolving credit facility (the Credit Facility), which provides for senior secured financing of up to $390 million, subject to the borrowing base and other specified terms and conditions. The proceeds from the Notes offering, together with borrowings under the Credit Facility, are being used by the Company to repay its existing credit facility, to pay certain related transaction costs and expenses and for general corporate purposes.
American Commercial Lines Inc.'s Commercial Barge Line Company Prices Issue of $200 Million of New Debt
Commercial Barge Line Company (CBLC), a direct wholly owned subsidiary of American Commercial Lines Inc. announced the pricing of an issuance of $200 million aggregate principal amount of 12 1/2% senior secured second lien notes due July 15, 2017 (the Notes). The Notes will be guaranteed by the Company and by certain of CBLC's existing and future domestic subsidiaries. The Notes are expected to be issued on July 7, 2009, simultaneously with the closing of the new four year $350 million senior secured first lien asset based revolving credit facility (the Credit Facility) by CBLC, the Company and certain other direct wholly owned subsidiaries of CBLC. The issue price is 95.181% of the principal amount of the Notes. Proceeds from the offering, together with borrowings under the Credit Facility, will be used to repay the Company's existing credit facility, to pay certain related transaction costs and expenses and for general corporate purposes.
American Commercial Lines Inc. Issues Q2 2009 EBITDA Guidance Below Analysts' Estimates
American Commercial Lines Inc. announced that for the second quarter of 2009, it expects EBITDA to be in the range of $15.5-$18.5 million. EBITDA is expected to include the expense for non cash stock compensation of $1.9 million. According to Reuters Estimates, analysts were expecting the Company to report EBITDA of $24.6 million for the second quarter of 2009.
