ARLINGTON, Texas, March 5, 2002 (PRIMEZONE) -- Fresh America Corp. (OTCBB:FRES), a food distribution management company, announced today that it has received an extension to the maturity date of its senior credit facility to January 2, 2003 and extensions to the maturity dates of its unsecured senior term debt to January 3, 2003. The Company's balance of aggregate senior term debt is $7.3 million, as compared to $18.7 million at December 2000. The Company is currently working on refinancing the senior credit facility which has a current outstanding balance of $4.1 million.
In addition to the 61% reduction in senior term debt over the last year, during September of 2001, North Texas Opportunity Fund invested $5 million of new capital in the Company for a 50% equity position on a fully-diluted basis and John Hancock and its related entities converted $20 million of subordinate debt, $5 million of preferred stock and approximately $2 million of accrued interest and fees for $2.7 million of preferred stock, which represents a 27% equity position in the Company on a fully-diluted basis.
Darren Miles, President and CEO commented, "We are pleased to have finalized the extensions to the maturity dates of our senior term debt through 2003. This allows the Company to focus on the refinance of our senior credit facility and our 2002 initiatives designed to enhance profitability and build value for our shareholders."
About Fresh America
Fresh America is an integrated food distribution management company that operates facilities and offices located in Dallas and Houston, Texas; Atlanta, Georgia; Scranton and Wilkes-Barre, Pennsylvania; Richmond, Indiana; Chicago, Illinois; and Norwalk and Walnut Creek/Visalia, California.
Forward-Looking Statement
This document includes "forward-looking statements" within the meaning of Section 27A of the Securities and Exchange Act of 1934, as amended, based on current management expectations. The Company's actual results could differ materially from those management expectations. Factors that could cause future results to vary from current management expectations include, but are not limited to, adverse weather conditions, a decrease in sales in the fresh produce industry due to the threat of bio-terrorism, continued loss of key sales personnel, general economic and market conditions, the availability and cost of borrowed funds and limitations arising from the Company's indebtedness, the Company's ability to refinance its existing bank debt and raise additional capital, seasonality, legislative and regulatory changes, industry competition, changes in accounting principles, policies and guidelines, and other economic, competitive, governmental factors affecting the Company's operations, markets, products, services and prices. Further description of the risks and uncertainties to the business are included in detail in the Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 13, 2001 and annual report on Form 10-K, filed with the Securities and Exchange Commission on September 12, 2001.