HOUSTON, Sept. 21 /PRNewswire-FirstCall/ -- EGL, Inc. (Nasdaq: EAGL)
announced today that effective August 26, 2004, TDS Logistics, Inc., of which
EGL was a 40% shareholder, was merged with and into TDS/Yucaipa Holding Corp.
EGL sold its entire investment in this automotive logistics company for cash.
After acquisition fees and other expenses, EGL's share of the merger
consideration was approximately $51 million -- $45 million received at closing
and approximately $6 million to be held in escrow. The sale resulted in a
gain of approximately $5 million to EGL, which will be included in non-
operating income in the condensed consolidated statement of operations for the
quarter ending September 30, 2004, and excludes the sale proceeds held in
escrow. As a result of the sale, EGL was released as guarantor of a letter of
credit and terminated a $2 million standby letter of credit for TDS.
In addition, on September 15, 2004, EGL entered into a new credit
agreement from a syndicate of banks, led by Bank of America, N.A.,
establishing a 5-year $150 million, unsecured revolving credit facility under
which EGL can borrow for general corporate purposes, including, but not
limited to, stock repurchases, as authorized by the Board of Directors, and
strategic acquisitions. The new credit facility matures on September 15, 2009
and replaces a previous $100 million secured credit facility, which would have
matured on December 20, 2004. As of September 20, 2004, EGL had not drawn on
this credit facility.
Houston-based EGL, Inc. operates under the name EGL Eagle Global
Logistics. EGL is a leading global transportation, supply chain management
and information services company dedicated to providing superior flexibility
and fewer shipping restrictions on a price competitive basis. With 2003
revenues exceeding $2.1 billion, EGL's services include air and ocean freight
forwarding, customs brokerage, local pick up and delivery service, materials
management, warehousing, trade facilitation and procurement, and integrated
logistics and supply chain management services. The Company's shares are
traded on the NASDAQ National Market under the symbol "EAGL".
CAUTIONARY STATEMENTS
The statements in this press release which are not historical facts are
forward looking statements. Such statements involve risks and uncertainties
including, but not limited to, general economic conditions, risks associated
with operating in international markets, the results of litigation, the timing
and effects of any improvements in the regions and industry sectors in which
the Company's customers operate, infrastructure improvements, ability to
manage and continue growth, competition and other factors detailed in the
Company's 2003 Form 10-K, proxy statement and other filings with the
Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize (or the consequences of such a development worsen),
or should underlying assumptions prove incorrect, actual outcomes may vary
materially from those forecasted or expected. The Company disclaims any
intention or obligation to update publicly or revise such statements, whether
as a result of new information, future events or otherwise.
SOURCE EGL, Inc.
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Related links:
http://www.eaglegl.com
CONTACT:
Elijio Serrano, Chief Financial Officer,
+1-281-618-3665, or Mike Slaughter, Investor Relations,
+1-281-618-3428, both of EGL, Inc.
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