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ALJ Announces Refinance of KES Senior Credit Facility and Repurchase of KES Preferred Stock and ALJ Subordinated Debt at Discou

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  Published in Business and Finance on Friday, June 4th 2010 at 18:21 GMT by Market Wire
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ASHLAND, Ky.--([ BUSINESS WIRE ])--Today, ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) (aALJa) announced that its operating subsidiary KES Acquisition Company (aKESa) has refinanced its senior credit facility and repurchased 6,564 shares of its 13% Series A Preferred Stock at a discount to par, generating future cash savings of approximately $4.6 million. Additionally, ALJ repurchased a portion of its outstanding subordinated debt at a discount to par, generating future cash savings of approximately $400,000. In total, these two transactions, generated over $5.0 million in future cash savings to ALJ, or approximately $0.10 per share.

"The continuing profitability of both KES and ALJ have allowed us once again to decrease the companya™s debt in a way that sends a strongly supportive message to our shareholders, our customers, our employees and to our suppliers."

According to John Scheel, ALJa™s Chief Executive Officer, aThe continuing profitability of both KES and ALJ have allowed us once again to decrease the companya™s debt in a way that sends a strongly supportive message to our shareholders, our customers, our employees and to our suppliers.a

For additional details regarding the terms of KESa™ new credit facility and the repurchase transactions, please see ALJa™s release posted at [ www.pinksheets.com ].

ALJ is the parent company of KES Acquisition Company dba Kentucky Electric Steel, the owner and operator of a steel mini-mill near Ashland, Kentucky.