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TAMPA — Quality Distribution Inc., which is preparing to offer 4 million shares of its common stock (symbol: QLTY), announced that those shares would be sold for $9.50 each.
Because half of the shares being offered are owned by Apollo Management (see below), Quality could raise up to $19 million, less sale costs, to pay down its outstanding debt.
From Feb. 2:
TAMPA — On the same day that it announced preliminary results showing a net loss of roughly $11 million for 2010, Quality Distribution Inc. (symbol: QLTY) said it would offer 4 million shares of its common stock to the public in an effort to raise capital.
Quality earned $686 million in revenues in 2010, but a heavy debt burden is causing the trucking company to make 2 million of its own shares available for purchase. Apollo Management LP, one of the company's largest equity investors, will offer another 2 million shares.
All monies raised from the sale will go toward paying down debt, officials said. The company ended 2010 with roughly $317.3 million in debt, against $1.8 million in cash reserves.
Prior to its most recent report, it appeared Quality might end 2010 with a profit, having posted a positive net income of $3.3 million through the year's first three quarters. But in the most recent quarter, a $9.1 million refinancing charge, $3.2 million in restructuring costs, and $0.7 million spent on a stock offering that never happened all hurt profits.
All told, Quality ended the year the same way the firm's chief executive thought it would. “Our anticipated fourth quarter results met our expectations,” said CEO Gary Enzor.
Quality Distribution Inc. is a trucking company headquartered in Tampa.
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