The net proceeds from this offering are estimated to be approximately $177.0
million (after deducting underwriting discounts and other estimated costs). The
proceeds of this offering, together with the proceeds from the high yield debt
offering, will be used primarily to repay a substantial portion of the existing
indebtedness of the IFCO Companies and PalEx, to pay the merger consideration
to PalEx's stockholders, and to fund the other concurrent transactions. IFCO
Systems has summarized below the estimated sources and uses of funds, assuming
that the merger, this offering, the high yield debt offering, the other
concurrent transactions, and the debt repayments had occurred as of October 31,
1999. The actual sources and uses of proceeds will vary from those summarized
below, depending on the actual date of the closing and the exchange rate on
that date.
Amount
(in thousands)
Sources of Funds:
Senior subordinated notes(1)................................... $ 210,360
Proceeds from this offering(2)................................. 193,700
Total........................................................ $ 404,060
Uses of Funds:
Cash payment to PalEx stockholders(3).......................... $ 73,796
Repayment of PalEx debt and related party loans(4)............. 143,012
Repayment of IFCO Companies debt(5)............................ 75,350
Purchase remaining interest in IFCO U.S. and repayment of
debt(6)....................................................... 29,400
Payment to GE Capital(7)....................................... 23,095
Payment for participating rights and redeemable participating
rights(8)..................................................... 5,348
Fees and expenses(9)........................................... 36,692
Available proceeds to be used primarily for future working
capital and capital expenditure needs......................... 17,367
Total........................................................ $ 404,060
The fat has already been ridden off of this pig. It will be very interesting to see the names associated with the BoD in the US. Those names will be coming soon.
http://access.edgar-online.com/ipo/textSection.asp?cikid=71578&fnid=3256&IPO=1&sec=pr&coname=IFCO+SYSTEMS+NV&ticker=