Roadrunner files S-1 for rights offering to existing holders
Roadrunner announced that it has filed a registration statement on Form S-1 with the SEC for a rights offering to existing holders of its common stock. This rights offering is expected to be supported by a commitment that is being negotiated with certain funds affiliated with Elliott Management to purchase all unsubscribed shares of the company's common stock to ensure that the rights offering is fully subscribed. The company expects to receive gross proceeds of approximately $450M before fees and expenses. The purpose of the rights offering is to improve and simplify the company's capital structure in a manner that gives the company's existing stockholders the opportunity to participate on a pro rata basis. By improving and simplifying its capital structure, the company believes it will increase the speed and likelihood of a full operational recovery. The company intends to use the proceeds from the rights offering and the backstop commitment to pay in cash all accrued and unpaid dividends on the company's outstanding shares of preferred stock, to redeem all of the company's outstanding shares of preferred stock, to pay all expenses incurred by Elliott in connection with any backstop commitment and to pay all fees and expenses of the company in connection with the rights offering. Elliott will not receive any fees for providing the backstop commitment. The company intends to use any remaining proceeds for general corporate purposes.