Quality Distribution earmarks stock proceeds for 11¾% notes redemption

By Jennifer Chiou

New York, Feb. 1 - Quality Distribution, Inc. intends to retire some of its 11¾% senior subordinated payment-in-kind notes due 2013 using a portion of the estimated $16.4 million of net proceeds from the sale of shares, according to a 424B5 filing with the Securities and Exchange Commission.

The company said it will retire the notes through redemption, discharge, defeasance or opportunistically through tender offers.

The Tampa, Fla.-based freight company added that it may reduce the amounts under its ABL facility.

The company announced on Dec. 21 that its subsidiaries Quality Distribution, LLC and QD Capital Corp. intended to redeem $9,965,000 of the notes at par plus accrued interest.

Additionally, Quality said at the time that it recently acquired or agreed to acquire $2,535,000 of the notes through open-market purchases.

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