| 2020-07-02 11:02:04|
JOB 11:02 07/02 07/02/20
GEE soars after restructuring eliminates debt, mezzanine financing
GEE Group (JOB) announced earlier today that it completed and closed a recapitalization and financial restructuring on June 30 that "significantly strengthened its balance sheet through the elimination of over approximately $47 million in subordinated debt and mezzanine preferred stock financing while adding approximately over $40 million pre-tax to GEE Group's stockholders' equity." Approximately $47.4M, which is comprised of approximately $19.7M of subordinated debt and approximately $27.7M of preferred stock mezzanine financing, was eliminated from the company's balance sheet at a "substantial discount" in exchange for cash of approximately $5.1M inclusive of accrued interest and the issuance of approximately 1.8M of GEE Group restricted common shares, the provider of staffing solutions said in a statement. It added, "The deleveraging transactions resulted in the extinguishment of 100% of the Company's subordinated debt and preferred stock mezzanine financing. Only the Company's long-term senior debt, including its loans under the CARES ACT Payroll Protection Program, remain outstanding as of June 30, 2020, which places the Company in a better position from a liquidity standpoint and for future growth." GEE Group shares in morning trading are up 287%, or $1.48, to $2.00.