SMITHFIELD—AAi.FosterGrant Inc., a marketer of branded optical products and costume jewelry, announced that it has successfully completed its turnaround by arranging a $52 million debt-for-equity swap and a $4 million equity investment. According to company officials, the transaction paves the way for accelerated growth.
“This debt-for-equity swap and capital investment give the company fresh resources to invest in the FosterGrant brand and to pursue growth,” said John Ranelli, president and CEO of the Smithfield-based company. “We will advance our industry-leading product development by providing consumers more fashion and features for their dollar, communicate our brand story to more people and expand our distribution in current and new markets.”
An overwhelming 99 percent of bondholders agreed to the debt-for-equity swap, allowing the company to retire $51.53 million of its 10 and three-quarters percent senior notes due n 2006. Interest expense is expected to be reduced by approximately $6 million annually, to $2 million. Company officials said the transaction did not affect employees, customers, and suppliers.
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Local company
to participate in mission to Mexico
PROVIDENCE – Charles Reade, president of the Providence-based Reade Advanced Materials, will join Commerce Secretary Don Evans as one of the 15 U.S. business leaders on a business development mission to Mexico City and Monterrey, Mexico this week.
Reade Advanced Materials, a small 100-year-old specialty materials manufacturer, will join 13 other mission participants in hopes of strengthening exiting contracts with Mexican companies while at the same time expanding the business. Reade said he is especially interested in talking with pharmaceutical companies.
“Here in America we sell quite a bit of material to the pharmaceutical community,” he said. “Mexico has some of the most prominent pharmaceutical manufacturers, so we think that it is a great opportunity for us.”
Reade has facilities on both the east and west coasts.
R.I. to receive
$6.4 million for bioterrorism
WASHINGTON – Health and Human Services Secretary Tommy Thompson notified U.S. senators Jack Reed and Lincoln Chafee that the HHS has approved the state’s bioterrorism preparedness plan and will released the remaining $6.3 million appropriated to the state to help strengthen its ability to respond to bioterrorism and other pubic health emergencies resulting from terrorism.
According to the HHS, funds will be used to develop comprehensive bioterrorism preparedness plans, upgrade infectious disease surveillance and investigation, enhance readiness of hospital systems to deal with large numbers of causalities, expand public health laboratory and communications capacities, and improve connectivity between hospitals, and city, local, and state health departments to enhance disease reporting.
Rhode Island Initially received $1.5 million or 20 percent of the $7.9 million funding but the remaining 80 percent was not available until HHS’s approval of the state’s Preparedness Plan.
DEM to give beach
back to Block Island
PROVIDENCE – The Department of Environmental Management will transfer title of the Fred Benson State Beach on Block Island to the town of New Shoreham. The town gave the 17.7-acre parcel, located on Corn Neck Road, to the state in 1953 to establish and maintain a public beach. After building a bathing pavilion on the beach in 1954, the state operated the beach until 1992, when DEM and the town signed a 10-year agreement, placing responsibility for care and maintenance of the beach with the town.
Assembly passes
well water quality standards bill
PROVIDENCE—The General Assembly has passed legislation that will establish a drinking water quality standards for private wells.
The legislation, sponsored in the house by Rep. Brock D. Bierman, a Cranston Republican, requires certain new tests for private wells, calls for the establishment of quality standards for private wells both at the state and local level, and requires property owners to disclose previous well water test results prior to a sale or lease of property.
“This legislation is very much an issue of public safety, even though it applies to private wells,” Bierman said. “It is appropriate for government to be involved in this way when the bottom line is the quality of the water supply and the health of individuals using water from that supply.”
New England Gas
Company settles union contract
PROVIDENCE – New England Gas Company, a natural gas operating division of Southern Union Company, has reached a tentative new agreement with members of Local 12431-02 of the United Steelworkers of America. The 69 union members are expected to vote on the new agreement at an upcoming meeting.
The new agreement, effective for five years will be effective June 1 and expire August 31, 2007. No additional details about the agreement were disclosed.
(Compiled from news reports and releases, print and electronic.)
