CEVA completes private exchange offers and recapitalization efforts

CEVA said that it will reduce its consolidated net debt by more than $1.7 billion ($1.3 billion euros) and its annual cash interest expense by more than $170 million ($130 million euros) and also receive a capital infusion of a minimum of $301 million ($230 million euros) for investment in its business plan.

By ·

Following its April announcement that it reached an agreement with its major note holders to recapitalize its balance sheet and raise new capital, global third-party logistics (3PL) services provider CEVA Logistics said that this effort is now complete.

CEVA said that through these efforts it will reduce its consolidated net debt by more than $1.7 billion ($1.3 billion euros) and its annual cash interest expense by more than $170 million ($130 million euros) and also receive a capital infusion of a minimum of $301 million ($230 million euros) for investment in its business plan.

CEVA officials said that the Exchange Offers and the Consent Solicitations were conducted in connection with CEVA’s previously announced financial recapitalization plan to reduce substantially CEVA’s overall debt and interest costs, as well as increase liquidity and strengthen its capital structure.  And they added that the Recapitalization will enable CEVA to better serve its customers, accelerate its growth throughout the world and fund the development of new supply chain products and services.

“We are pleased to be successfully completing the Recapitalization and are appreciative of the support of our creditors in this effort,” said Marvin Schlanger, CEVA’s Chief Executive Officer, in a statement. “CEVA is now a much stronger competitor in the Supply Chain Industry and we look forward to growing with our customers around the world. This is a transformational transaction that positions CEVA to better serve our customers and develop new supply chain solutions and services to meet their needs.”

In a recent interview with LM, Schlanger said that these efforts will make for a stronger balance sheet for CEVA, which will enable the company to grow faster and better compete in the logistics and supply chain marketplace.

“We will have the flexibility of making additional capex investments, which will allow us to better serve our customers as they grow globally, and it will allow us to build and sell new supply chain products,” he said. “That is very important as the supply chain sector moves forward over the next few years. It is very important and very good for CEVA and strengthens us significantly, and we think that can only be positive for our customers as this transaction allows us to do more for them in terms of better service, more products, more locations and more growth.”

In terms of some of the benefits of increased capex investment, Schlanger said that CEVA’s customers are demanding more transparency and more visibility and more tractability and control of their supply chains at any given point in time.

Part of the gains, he said, will come in increased IT functionality and applications to meet the needs of customers.
“I think we will be in a position to move forward to make more investments into these kinds of IT products our customers are asking for and will allow us to differentiate ourselves from the competition,” he said.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

3PL · CEVA · Global Logistics · All Topics
Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...