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 Payoff Date.
"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 Officer.
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 www.signaturegroupholdings.com.
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.