- 8 -
share paid by investors who acquired stock in CC Holdings as part
of the LBO of petitioner.
Terms of the agreement under which FNBB received options to
acquire stock in CC Holdings for $500 per share were hotly
negotiated between JC Investors, CC Holdings, and FNBB.
Financing the LBO posed significant risks for FNBB.
Approximately $9 million of the $26 million loan made available
by FNBB was not secured. The LBO would change petitioner's
capital structure from primarily equity to primarily debt. In
recognition of such risks, the options provided FNBB the
potential to earn significant additional income if the stock of
CC Holdings increased in value. FNBB loan officers estimated
that the options might have a value in 5 years of approximately
$5 million.
Immediately following the LBO transaction and under the
various supplemental agreements, the common stock (or in the case
of FNBB options to acquire common stock of CC Holdings) was owned
as follows:
Percentage Ownership
Stockholders In CC Holdings
JC Investors 28.500
Mezzanine Capital 28.500
Cruze, Panzica,
Battistella, and Navarra 24.625
FNBB (options) 12.500
Other Employees of Petitioner 5.375
Miscellaneous .500
Total 100.000
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011