Trailer Bridge, Inc. has been notified by the Nasdaq Listing Qualifications Panel that, based upon a transaction it finalized today, it has regained compliance with Nasdaq’s maintenance standards and its common stock will continue to be listed on The Nasdaq National Market.
Upon receipt of the favorable decision of the Nasdaq Listing Qualifications Panel, Trailer Bridge completed the exchange of $20,378,615 of inter-company debt, the entire amount outstanding at March 31, 2002, to its affiliate Kadampanattu Corp.
)” into non-convertible preferred stock. The exchange had been previously approved by both companies’ boards of directors and was conditioned solely upon a favorable response from the Nasdaq Listing Qualifications Panel. Under the terms of the new preferred stock, no dividends will accrue until April 1, 2003. Commencing on that date, dividends will accrue at 90-day LIBOR plus 350 basis points. Starting in 2004, the dividend rate will increase 25 basis points per quarter up to a maximum dividend rate of 90-day LIBOR plus 650 basis points. Including the effect of this transaction, Trailer Bridge’s proforma tangible net worth would have exceeded $11 million at June 30, 2002, a level well above Nasdaq requirements. Trailer Bridge believes it will remain in compliance with Nasdaq listing requirements.
“We are grateful to K Corp. for agreeing to this change. We are also appreciative for the insight of the listing panel in recognizing that the facts related to our company, our sector and our present point in a specific cycle justify Trailer Bridge’s continued listing on The Nasdaq National Market,” said John D. McCown
, Chairman & CEO.