Envirotest Receives Requisite Consents to Amend Note Indentures
19 August 1997
Envirotest Receives Requisite Consents to Amend Note IndenturesSUNNYVALE, Calif., Aug. 19 -- Envirotest Systems Corp. (AMEX: ENR) today announced that it has received the requisite consents from the holders of a majority of its outstanding 9.125% Senior Notes due 2001 and a majority of its outstanding 9.625% Senior Subordinated Notes due 2003 to certain amendments to the indentures governing such notes. The amendments will permit the Company to make $10 million in additional restricted payments and investments (as defined in the indentures). In addition, the proposed amendments provide that on or prior to September 30, 1997, the Company may elect for one or two additional increases of $5 million each. The proposed amendments will become operative upon the expiration of the Company's previously announced offer to purchase up to $50 million in aggregate principal amount of the 9.125% Notes at a price of par plus accrued and unpaid interest, regardless of the amount of the 9.125% Notes tendered or acquired. Consenting holders of the notes will receive a payment of 1.0% of the principal amount of the notes covered by the consent, plus an additional .5% of the principal amount for each $5 million optional increase exercised by the Company, on the earlier of (i) five business days after the expiration of the 9.125% 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.