Greyhound reaches agreement with bondholders

Business Wire, Nov 11, 1994

DALLAS--(BUSINESS WIRE)--Nov. 11, 1994--Greyhound Lines Inc. and a majority of its debenture holders agreed in principal to a comprehensive financial restructuring, whereby the company's $98.9 million of Convertible Subordinated Debentures due March 31, 2007, would convert into 25,319,515 shares or 45 percent of the common stock in the recapitalized company.

This is equivalent to approximately 256 shares per $1,000 bond. Existing shareholders would retain their original 14,667,004 shares of common stock, and 16,279,070 shares of new common stock would be sold via a rights offering, initially to existing shareholders, at a price of $2.15 per share.

Under the terms of the agreement, debenture holders would nominate two of nine directors of the company. In addition, the holders that sent a purported Notice of Acceleration have agreed to withdraw the notice. Additionally, those holders that filed an involuntary bankruptcy petition against the company will withdraw the petition upon closing of the restructuring transaction.

Wilbur Ross, Senior Managing Director of Rothschild Inc., financial adviser to Greyhound, said, "We are pleased that negotiations were completed in less than 60 days and that management can now get on with the task of rebuilding the company without further distraction."

Chriss Street, a member of the Negotiating Sub-Committee of the Greyhound Bondholders' Committee, said, "We believe the agreed upon recapitalization is fair to all parties and will position the company to return to profitability."

The agreement is subject to documentation and the approval of Greyhound's shareholders and board of directors.

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Note to Editors: Greyhound (ASE:BUS) is the only nationwide provider of intercity bus transportation services. The company's primary business is scheduled passenger service and food service at certain terminals. The company currently provides service to more than 2,600 destinations with a fleet of 1,987 buses.

CONTACT: Rothschild Inc. (Investors)

              Wilbur L. Ross Jr., 212/403-3581
              Greyhound Lines Inc. (Media)
              Bill Kula, APR, 214/789-7201