Envirotest Extends and Revises Consent Solicitation
11 August 1997
Envirotest Extends and Revises Consent Solicitation
SUNNYVALE, Calif., Aug. 11 -- Envirotest Systems Corp.
(Amex: ENR) today announced that it has extended the expiration date of its
previously announced consent solicitation with respect to certain proposed
amendments to the indentures governing its 9-1/8% Senior Notes due 2001 and
9-5/8% Senior Subordinated Notes due 2003 to 5:00 p.m., New York time, on
Monday, August 18, 1997.
The Company also announced that the consent solicitation has been revised
to provide that the proposed amendments will become operative if and when an
offer by the Company to purchase up to $50 million in aggregate principal
amount of the 9-1/8% Notes expires; provided that on or after such date the
Company accepts (subject to the terms and conditions of such offer) securities
validly tendered pursuant to and in accordance with the terms of such offer.
Under the terms of the consent solicitation, such offer would be at a price of
par plus accrued and unpaid interest, and may contain certain conditions
(other than with respect to any buy back of the Company's outstanding equity
securities) customarily contained in debt tender offers. The proposed
amendments, however, will become effective if and when the Company receives
the requisite consents to the proposed amendments from the holders of the
Company's 9-1/8% Notes and 9-5/8% Notes, respectively, and the Company and the
Trustee execute the respective supplemental indentures containing the proposed
amendments.
In addition, the consent solicitation has been revised to provide that
consenting holders of the 9-1/8% Notes and 9-5/8% Notes will receive the
applicable consent payments on the earlier of (I) five business days after the
expiration of the 9-1/8% Notes offer and (ii) September 30, 1997.
Envirotest Systems Corp. is the largest provider of vehicle inspection
services in the country and the only domestic company that provides vehicle
inspection services outside the United States.
This press release contains statements that are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934,
which represent the Company's expectations or beliefs concerning future
events. The Company cautions that these statements are further qualified by
important factors that could cause actual results to differ materially from
those in the forward looking statements. A number of such factors are set
forth in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.
SOURCE Envirotest Systems Corp.
