Equus Disposes of Interest in Sovereign for $6.36 Million in Cash
June 21 2012 - 5:21PM
Marketwired
Equus Total Return, Inc. (NYSE: EQS) ("Equus" or the "Fund")
announced that it has sold to Sovereign Business Forms, Inc.
("Sovereign"), the Fund's 55% fully-diluted equity interest in
Sovereign, together with the Fund's promissory note issued by
Sovereign and all interest as accrued in exchange for $6.36 million
in cash. Sovereign is a business forms manufacturer which operates
five printing plants in Texas, Kansas, Tennesseee, and
Massachussetts. Having held its interest in Sovereign for
approximately 16 years, Equus sought to monetize its investment. In
May 2011 an investment banking firm was retained to canvas
potential strategic buyers, determine market interest and explore a
possible sale of the company. No formal offers in a valuation range
acceptable to the Fund were received. Subsequently, Sovereign's
Management, with the cooperation of the Fund, refinanced operations
to obtain the capital to buy out the position held by Equus.
As a result of the sale of the Fund's interest in Sovereign, the
Fund's net asset value will decline $0.04 per share. Based on cash
and cash equivalents of $16.8 million held by Equus at March 31,
2012, combined with the proceeds from the sale of its interest in
ConGlobal and Sovereign, the Fund's cash increased to approximately
$28.4 million, or $2.69 of cash per share.
About Equus The Fund is a business
development company that trades as a closed-end fund on the New
York Stock Exchange, under the symbol "EQS". Additional information
on the Fund may be obtained from the Fund's website at
www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund's current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in
particular, the risks and uncertainties described in the Fund's
filings with the SEC. Actual results, events, and performance may
differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.
Except as required by law, the Fund undertakes no obligation to
release publicly any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. The
inclusion of any statement in this release does not constitute an
admission by the Fund or any other person that the events or
circumstances described in such statements are material.
Contact: Patricia Baronowski Pristine Advisers, LLC (631)
756-2486
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