Nebraska Book Company Announces New Debt Facility and Balance Sheet Restructuring

Major debt holders have converted debt to equity and approved a new financing facility showing confidence in Nebraska Book Company’s leadership, strategy and operations

LINCOLN, Neb.–Nebraska Book Holdings, Inc. (NBC) announced today, July 31, 2018, that it has successfully completed the restructuring of its balance sheet eliminating the substantial majority of its legacy long-term debt. Going forward the company will have a capital structure that will enable growth and profitability. This was accomplished by NBC’s major debt holders converting their remaining debt to equity and through a new Asset Based Loan (ABL) facility from Callidus Capital Corporation (Callidus). On or before October 1, 2018, NBC intends to redeem all remaining notes, fully eliminating its legacy long-term debt.

“Over the past 18 months the NBC team has worked with our creditors to eliminate the substantial majority of the $168 million in debt that remained from the 2012 bankruptcy and 2016 debt restructuring,” said Jay Amond, NBC CEO. “We truly appreciate the confidence our historic creditors and our new ABL lender, Callidus, has shown in our organization, which will allow us to move forward aggressively in support of our customers and further drive our commitment to the Higher Education market.”

The Callidus ABL provides NBC with additional working capital for execution of its strategic plans, including expanding its wholesale textbook distribution business and the rapid delivery of a fully modernized, state-of-the-art technology solution for customers of Prism Retail Business Solutions (PrismRBS).

In addition, “In the last few months the NBC team has created PrismRBS by merging RATEX Business Solutions, Inc. and NBC’s IT division, achieved EPEG counterfeit best practices certification and finalized the debt restructuring, positioning the company well for the future,” said David Steinberg, NBC Director and CEO, Mast Capital. “NBC’s customers can be assured that the company has the resources and capital structure to continue to provide them with the extraordinary service that has been the hallmark of the organization. I congratulate all of the members of the NBC team for these significant accomplishments.”

About Nebraska Book Holdings (NBC)

NBC began in 1915 as an independent college bookstore. The company has evolved into a key resource and consulting partner to over 2,000 college retailers nationwide, providing textbook and technology solutions which support student success and strengthen higher education retail across the United States, Canada and the Caribbean. In addition to being one of North America’s largest textbook distributors, NBC’s subsidiaries include PrismRBS, College Store Design and Campus Advisory Services. For more information about NBC visit http://nebook.com.

Media Contact:

Joshlyn Mangan

jmangan@nebook.com  

402-421-0461

 

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