CEVA completes private exchange offers and recapitalization efforts

By Jeff Berman, Group News Editor
May 02, 2013 - LM Editorial

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 headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

In a separate conference call following CP’s third quarter earnings release call yesterday, CP CEO Hunter Harrison make myriad convincing points for a merger between CP and CSX and offered up his take in general industry M&A as well.

Seasonally-adjusted (SA) for-hire truck tonnage in September checked in at 132.6 (2000=100) for the second straight month, remaining as the current all-time high level for the second month in a row, with November 2013’s 131.0 now the second best month recorded.

Ahead of its third quarter earnings call this Friday, freight transportation and logistics titan UPS rolled out rate increases for 2015 that are set to take effect on December 29, 2014.

The 'Internet of Things' or IoT is a term that has rapidly taken center stage in business and consumer technology circles, with tremendous amounts of hype in both. Don't be distracted if some of the hypothetical consumer examples of the IoT seem far-fetched; the trend has serious implications for businesses. This complimentary whitepaper takes a look at some of the opportunities afforded by the Internet of Business Things.

Article Topics

News · 3PL · Global Logistics · CEVA · All topics

About the Author

Jeff Berman, 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.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA