US Concrete completes Chapter 11 reorganization

HOUSTON

U.S. Concrete Inc., which makes ready-mixed concrete and other building supplies, said Tuesday it has completed its financial restructuring under Chapter 11 bankruptcy protection.

The company, which started the reorganization process four months ago, said it converted into equity about $272.6 million of principal amount of 8.375 percent senior subordinated notes due 2014.

In addition, warrants to buy up to 15 percent of equity in the reorganized company will be issued to investors who held the company's old common stock in upcoming weeks, the company said.

Management also said it has obtained a $75 million revolving secured credit facility with a group of banks led by JPMorgan Chase & Co. and issued $55 million of 9.5 percent convertible secured notes due 2015.

"The new credit facility provides us with adequate liquidity to fund our working capital needs and capital expenditure program as we move forward," said Michael Harlan, the company's president and chief executive.

U.S. Concrete shares slipped a penny, or 5.3 percent, to 18 cents on Tuesday. Shares have traded between 10 cents and $1.97 in the past 12 months.

The company's stock trades on the over-the-counter market.