Quality Distribution IPO proves successful

Nov 13, 2003 12:00 PM

A stock initial public offering (IPO) by Quality Distribution Inc (QDI), Tampa FL, proved successful after the company offered seven million shares at $17 per share November 7. By November 12 at noon, the stock was quoted at $18.05. It had reached a high of $20.36 during the time between the initial offering and November 12. The stock is listed on the NASDAQ under the symbol, QLTY. The IPO is expected to close Thursday, November 13.

"Management is very pleased with the success of our initial public offering and the issuance of the senior subordinated notes," says Sam Hensley, QDI chief financial officer. "We believe our new capital base positions us well to continue to execute our business plan."

The stock IPO is conditioned upon the entry by Quality Distribution LLC into a new credit facility and the completion of the concurrent private offering of nine percent senior subordinated notes due 2010 to be co-issued by the company's subsidiaries, Quality Distribution LLC and QD Capital Corporation. The notes will be guaranteed by the company and certain of its subsidiaries. The offering of the notes is expected to close on Thursday, November 13, and raise about $125 million. The note offering is conditioned upon the completion of the stock offering.