johnd@tsdiag.ccur.com (John Decatur KA2QHD) (03/11/91)
==========PRESS RELEASE========= FOR IMMEDIATE RELEASE CONTACT: Vic Taylor Media Relations (508) 392-2319 Barbara Pistilli Investor Relations (908) 758-7576 CONCURRENT COMPUTER CORPORATION AVOIDS CHAPTER 11 - REACHES DEBT RESTRUCTURING AGREEMENT Tinton Falls, N.J., March 5, 1991 -- Concurrent Computer Corporation announced today that it has avoided Chapter 11 by reaching an agreement to restructure its bank debt on terms acceptable to the company, its bank group and bondholders. The agreement is subject to customary approvals and final documentation. The company previously announced that the petitioning bondholders agreed to file a motion to withdraw their involuntary Chapter 11 petition upon an agreement to restructure the bank debt. Under the agreement, approximately $53 million in senior bank debt will be converted into a $43 million term loan and revolving credit facility of $10 million . The term loan and the revolving credit facility will have a three year maturity. From now until June 30, 1992 required principal payments on the bank debt will be approximately $7 million, compared to $15 million under the prior arrangement. On January 22, Concurrent announced a debt restructuring agreement with its bondholders. This agreement provides for the exchange of the $110.6 million of existing 14 1/4% notes for $55 million of new 13% senior subordinated notes and 70% of the fully diluted voting equity of the recapitalized company. The exchange is expected to be completed in approximately 60 days. The restructuring of the subordinated notes defers all cash interest payments on the subordinated debt for at least two years, a cash savings of approximately $15.8 million per year. This combined with the reduction of principal amortization of the bank debt will decrease the cash obligations of the company by $23.8 million in the first year. Denis Brown, Concurrent's President and CEO said, "It has always been Concurrent's objective to recapitalize outside of Chapter 11. With today's agreement we will accomplish that goal. On completion of the recapitalization Concurrent will have a manageable capital structure -- a major step in the company's return to profitability. In effect, the exchange results in an equity investment in our company in excess of $70 million. We will now focus on implementing a comprehensive five year strategy to ensure Concurrent's future as a leading real-time solutions supplier." Mr. Brown said that Concurrent has reduced its cost structure and expenses significantly and has a new business plan that has already begun to show positive results. He noted that Concurrent exceeded its orders projection for the three months ended December 31, 1990. Concurrent Computer Corporation, headquartered in Tinton Falls, New Jersey, is the leading supplier of high-performance, real-time computer systems worldwide. The company's products, marketed through the Commercial, Federal and Real-Time Technical business lines, provide real-time solutions to the financial, communications, public sector, technical, aerospace and simulation markets. Its common stock trades on NASDAQ under the symbol CCURC. 127C0391 -- US MAIL: John Decatur Concurrent Computer Corp. FAX: 201-870-5952 2 Crescent Pl. Oceanport NJ 07757 Ph 908-870-4093 UUCP: rutgers!ka2qhd!johnd or johnd@tsdiag.ccur.com KA2QHD Quote: "DA DA DIT DIT DIT , DIT DIT DIT DA DA" PACKET: KA2QHD@NN2Z Articles to: concurrent@soma.bcm.tmc.edu or uunet!soma.bcm.tmc.edu!concurrent Administrative stuff: concurrent-request@soma.bcm.tmc.edu Stan Barber, Moderator