May 20, 2002
Trailer Bridge amends financing, adds directors
Trailer Bridge, Inc. today announced the execution of an amendment to its financing agreement with GE Capital and the addition of four new members to its board of directors.
The amendment with GE Capital, says Trailer Bridge, "waives past non-compliance with certain covenants and establishes new financial covenants that the company is confident it will remain in compliance with."
Trailer Bridge has a $15 million revolving credit facility, with actual draws determined by a borrowing base formula. At March 31, 2002, the amount outstanding under this facility was $4.7 million. The company also has approximately $10.3 million outstanding under a term loan facility with GE Capital.
Peter S. Shaerf has already joined the board. Malcom P. McLean, Jr., son of the company's founder, the legendary inventor of containerization, Malcom McLean will join the board at the company's May 29 meeting, as will Greggory B. Mendenhall and F. Duffield Meyercord . These new directors will join John D. McCown, William G. Gotimer, Jr., Artis E. James and Nickel van Reesema, all of whom are standing for re-election at the Trailer Bridge's annual shareholders' meeting on May 29, 2002. Dr. Charles R. Cushing has decided not to stand for re-election at the upcoming annual meeting.
Shaerf, 47, is senior VP of American Marine Advisors, Inc., an investment bank specializing in the maritime industry and also serves as a director of two other publicly listed companies, General Maritime Corp. and MC Shipping, Inc.
Malcom McLean, Jr is president of MPM Properties, Inc., a commercial real estate development company in Alabama. He was president of U.S. Lines, Inc.,from 1984 to 1986. McLean joins the board, says Trailer Bridge as part of a previously announced $4 million transaction with an affiliate. McLean is also a director of Kadampanattu Corp., an affiliate that charters two vessels to Trailer Bridge.
Mendenhall, too, joins the board as part of the same previously announced $4 million transaction. He is the managing partner of the New York office of Schnader, Harrison, Segal & Lewis LLP where his areas of practice include maritime, asset-based finance, business counseling and legislative and administrative matters. He joins the board as part of the previously announced $4 million transaction with an affiliate. Mr. Mendenhall's wife, Patricia McLean Mendenhall, is a director of Kadampanattu Corporation, an affiliate that charters two vessels to the Company, and he is the brother-in-law of Malcom P. McLean, Jr.
Meyercord, 55, is a managing director of Carl Marks Consulting Group, a leading New York-based turnaround firm. He too joins the board as part of the previously announced $4 million transaction.
Meyercord is the co-executor, along with Trailer Bridge chairman and CEO John D.. McCown, of the Estate of M.P. McLean, the holder of 50.6% of the stock of Trailer Bridge and 100% of the stock of Kadampanattu Corp., an affiliate that charters two vessels to the company.