Ugly Duckling Corp. Announces Completion of Supplemental Exchange Offer
23 December 1998
Ugly Duckling Corp. Announces Completion of Supplemental Exchange Offer
PHOENIX--Dec. 23, 1998--Ugly Duckling Corp. Wednesday announced the completion of its supplemental exchange offer, which expired yesterday as scheduled.
At the close of business on the expiration date, the exchange agent reported that a total of 225,425 shares of common stock were tendered to the company. The final total of tendered shares is subject to certain guaranteed delivery procedures and Ugly Duckling's review and acceptance of all such shares validly tendered.
The company plans to deliver debentures in exchange for shares in accordance with the exchange offer as soon as practicable after the expiration of the guaranteed delivery period.
The exchange offer enabled stockholders to exchange up to 2,536,397 shares in the company for 12%, five-year subordinated debentures. Under the terms of the offer, each share of common stock was exchangeable for $6.50 principal amount of debentures.
Stockholders who have questions about the exchange offer may contact Corporate Investor Communications Inc., the designated information agent, at 888/673-4478 (toll-free).
With headquarters in Phoenix, Ugly Duckling is a used car sales and finance company that operates the nation's largest chain of used car dealerships focused exclusively on the sub-prime market. The company underwrites, finances and services sub-prime contracts generated at its 50-plus Ugly Duckling dealerships.
Cygnet Financial Corp., a wholly owned subsidiary of the company, provides various financial services primarily to the sub-prime segment of the automobile financing industry.
This news release may include statements that constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expects" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include factors detailed in the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Risks Factors," "Factors That May Affect Future Results and Financial Condition" and "Factors That May Affect Future Stock Performance" in Ugly Duckling Corp.'s most recent reports on Form 10-K and Form 10-Q (including Exhibit 99 to any such Form 10-Q), factors detailed in the section "Risk Factors" in Ugly Duckling Corp.'s definitive proxy statement dated Aug. 4, 1998, and elsewhere in Ugly Duckling Corp.'s Securities and Exchange Commission filings. By making these forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this news release.