Cotton Holdings, Inc. Announces Closing of its Offer to Exchange its Notes Due 2013 - 12 News KBMT and K-JAC. News, Weather and Sports for SE Texas

Cotton Holdings, Inc. Announces Closing of its Offer to Exchange its Notes Due 2013

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SOURCE Cotton Holdings, Inc.

HOUSTON, March 8, 2013 /PRNewswire/ -- Cotton Holdings, Inc. (the "Company") announced today that its offer with respect to its outstanding 15% Second Priority Senior Secured Notes due 2013 (the "Old Notes") expired at midnight, New York City time, on March 7, 2013.  The exchange offer was for either: (a) cash payment of accrued and unpaid interest on the Old Notes plus a new issue of 15% second priority senior secured notes (the "New Notes") in a principal amount equal to 102.5% of the principal amount of the Old Notes; or (b) for Old Notes not to exceed $3 million in aggregate principal amount, cash equal to 75% of the principal amount of the Old Notes.   

In the exchange offer, $12,087,579 in principal amount (or 95.31%) of the Old Notes were validly tendered.  The Company has waived the requirement that at least 99% of the total principal amount of the Old Notes be tendered and modified such requirement to be at least 95% of the total principal amount of the Old Notes.  As a result the Company will close the exchange offer and issue an aggregate of approximately $11,414,748 in principal amount of the New Notes.

Bryan Michalsky, Chief Financial Officer of the Company, stated "We are gratified by the final results of this successful exchange offer and the support and confidence of our stakeholders.  This transaction provides the Company with the necessary liquidity and flexibility to take advantage of the significant opportunities in the marketplace and to maximize shareholder value."

Naveen Bhatia, Chairman of the Board of the Company, added "This successful transaction was the result of a combination of a first-rate management team, our significantly strengthened Board of Directors, and terrific advisors.  On behalf of the entire Cotton team, we are looking forward to continuing to build a world-class business."

Paul Hastings LLP acted as legal advisor and SSG Advisors, LLC provided investment banking services to the Company. 

About Cotton Holdings:

Headquartered in Katy, Texas, Cotton Holdings, Inc. is a privately-held holding company providing infrastructure services through its operating subsidiaries.  Through its restoration business, the Company provides restoration and maintenance services for commercial, industrial, marine, residential and institutional properties that have suffered catastrophic or other casualty loss as a result of, among other man-made and natural disasters, fires, earthquakes and hurricanes.  The Company also provides temporary housing solutions and associated large-scale integrated service offerings, primarily servicing large oil and gas companies with operations in the shale oil and gas exploration regions.   

Contact: Simon Coope, MacKenzie Partners, Inc., +1-212-929-5500

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