STATEN ISLAND, N.Y. — Atlantic Express Transportation Corp. (the “Company”) today announced the completion of an exchange of substantially all of its Senior Secured Floating Rate Notes due 2012 (the “Notes”) to effect a financial restructuring of the Company`s balance sheet. As part of the exchange, the Company has reduced its indebtedness by approximately $100 million.
As part of the restructuring, the holders of substantially all of the $185 million of Notes exchanged their Notes for approximately all of the Common Stock of the Company and new 10.5% Senior Secured Notes due 2013 in the aggregate principal amount of $90 million. As a result, Wayzata Investment Partners LLC, through the funds it manages, has become the controlling and majority holder of the Company`s outstanding Common Stock.
Domenic F. Gatto, the Chief Executive Officer of the Company, stated “The substantial improvement in our balance sheet makes Atlantic Express a stronger, better financed company. Our management team looks forward to working with Wayzata to increase our market share by providing our customers with the most reliable, safe and cost effective transportation solutions in the industry.”
Atlantic Express is the third largest provider of student transportation in the United States and the leading provider in New York City, the largest market in the United States. The Company also provides paratransit services for physically and mentally challenged passengers, and offers fixed route transit, express commuter line and charter and tour bus services. The Company has contracts with over 100 school districts throughout United States.
For additional information please contact:
Domenic Gatto, President and Chief Executive Officer
7 North Street, Staten Island, New York 10302
718-442-7000 ext. 8060
Website: www.atlanticexpress.com
E-mail address: corporatehq@atlanticexpress.com
Information contained in this news release other than statements of historical fact are forward-looking statements subject to various risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Factors that could cause the Company`s results to differ materially from the results in such forward-looking statements include failure to obtain the requisite consent of the holders of the Notes as currently contemplated.
