Advanced Environmental extinguishes 2007, 2008 bonds held by H.I.G.

H.I.G. cancels bonds in exchange for preferred equity, debt securities

By Devika Patel

Knoxville, Tenn., March 22 - Advanced Environmental Recycling Technologies, Inc. said it consummated a balance sheet restructuring plan to restructure and reduce existing debt, infuse new capital into the business and strengthen its balance sheet.

As part of this restructuring, H.I.G. Capital, LLC agreed to extinguish the company's 2007 and 2008 bonds, which are held by H.I.G. In return, H.I.G. received preferred equity and debt securities, reducing the company's debt obligations.

H.I.G. also invested an additional $5.5 million into the company to meet outstanding vendor obligations, pay down debt and finance transaction expenses. The investor also extended the maturity of its existing loan and reduced the interest rate on the loan.

Advanced Environmental is a recycling company based in Springdale, Ark.

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