Signature Group Holdings Sets Date for Redemption of Outstanding 9% Notes Due
December 31, 2016
SHERMAN OAKS, Calif., Nov. 18, 2013
SHERMAN OAKS, Calif., Nov. 18, 2013 /PRNewswire/ -- Signature Group Holdings,
Inc. (OTCQX: SGGH) announced on November 15, 2013 that it will redeem for cash
all of its outstanding 9% Notes due December 31, 2016 (the "Notes") on
December 30, 2013 ("Payoff Date"). The Notes have a face value of $39,000,000
and will be redeemed at par. Interest on the Notes will be paid through the
"Growing the company is our highest priority heading into 2014. However,
eliminating the significant cash burn that existed the last few years was also
one of my stated priorities when I assumed the role of Chairman and CEO. All
of our employees have dedicated themselves to achieving this objective. With
the note repayment, we cap off a series of expense reductions which I expect
will result in lower corporate expenses in 2014 of more than $5 million
compared to 2013. I'm very happy with the teamwork that made this happen. We
are ready to grow," said Craig Bouchard, Chairman and Chief Executive
In connection with the Company's proposed reincorporation, SGH Holdco, Inc.
has filed a preliminary proxy statement/prospectus with the Securities and
Exchange Commission. STOCKHOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AS IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSED
REINCORPORATION AND RELATED MATTERS. STOCKHOLDERS HAVE ACCESS TO FREE COPIES
OF THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC BY
THE COMPANY AND SGH HOLDCO, INC. THROUGH THE SEC WEB SITE AT WWW.SEC.GOV. THE
DEFINITIVE PROXY STATEMENT/PROSPECTUS AND RELATED MATERIALS MAY ALSO BE
OBTAINED FOR FREE (WHEN AVAILABLE) FROM THE COMPANY BY CALLING THE CONTACT
LISTED AT THE END OF THIS RELEASE.
Wells Fargo Bank, National Association is the trustee for the Notes and is
serving as the paying agent for this transaction. Copies of the Notice of
Redemption and additional information relating to the redemption of the Notes
may be obtained from Wells Fargo Bank, National Association, Corporate Trust
Services, 45 Broadway – 14th Floor, New York, NY 10006.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities.
About Signature Group Holdings, Inc.
Signature is a diversified enterprise with current principal activities in
industrial supply and special situations finance. Signature has significant
capital resources and is actively seeking additional acquisitions as well as
growth opportunities for its existing businesses. Signature has federal net
operating loss tax carryforwards of approximately $887.3 million. For more
information about Signature, please visit its corporate website at
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements, which are based on current
expectations, estimates, and projections about the Company's business and
prospects, as well as management's beliefs, and certain assumptions made by
management. Words such as "anticipates," "expects," "intends," "plans,"
"believes," "seeks," "estimates," "may," "should," "will" and variations of
these words are intended to identify forward-looking statements. Such
statements speak only as of the date hereof and are subject to change. The
Company undertakes no obligation to publicly revise or update any
forward-looking statements for any reason. These statements include, but are
not limited to, statements about the Company's expansion and business
strategies and anticipated growth opportunities and the amount of fundraising
necessary to achieve it. Such statements are not guarantees of future
performance and are subject to certain risks, uncertainties, and assumptions
that are difficult to predict. Accordingly, actual results could differ
materially and adversely from those expressed in any forward-looking
statements as a result of various factors. Important factors that may cause
such a difference include, but are not limited to the demand for Industrial
Supply's products; the Company's ability to successfully identify, consummate
and integrate the acquisitions of other businesses; the Company's ability to
open warehouses in additional geographic regions; changes in business or other
market conditions; the difficulty of keeping expense growth at modest levels
while increasing revenues; the Company's ability to successfully defend
against current and new litigation matters as well as demands by investment
banks for defense, indemnity, and contribution; and other risks detailed from
time to time in the Company's Securities and Exchange Commission filings,
including but not limited to the most recently filed Annual Report on Form
10-K and subsequent reports on Forms 10-Q and 8-K.
SOURCE Signature Group Holdings, Inc.
Contact: Signature Group Holdings, Inc., Jeff Crusinberry, SVP and Treasurer,
(805) 435-1255, email@example.com
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