Workflow Management gets waiver from banks on some amounts owed

By Sara Rosenberg

New York, March 30 - Workflow Management Inc.'s bank lenders have agreed to waive certain amounts that were due to them so that the company's net debt level would be less than the net debt level specified in the merger agreement with WF Holdings Inc., an entity formed and controlled by Perseus LLC and The Renaissance Group LLC.

With the waiver, the company has now satisfied the condition necessary to increase the cash amount to be paid for shares of Workflow common stock in the pending merger transaction to $5.375 per share from $4.87 per share, according to a company news release.

Stockholders will vote on the merger at a special stockholder meeting on Thursday.

In addition, Workflow announced that LaSalle Business Credit has rescinded its proposal for a new $115 million three-year credit facility consisting of a $100 million revolver and a $15 million term loan A, both priced with an initial interest rate of Libor plus 300 basis points.

This proposal from LaSalle had replaced the previous proposal from Bank of America, in the identical amount, that was withdrawn last week.

Pacific Coast Investment Partners LLC, a Workflow equity holder, was arranging the refinancing transactions in an attempt to defeat of the agreement and plan of merger between Workflow and WF Holdings.

Workflow is a Palm Beach, Fla., provider of end-to-end outsource solutions for printing and other office consumables.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.