Deep Down Reduces Debt by 1.8 Million
Deep Down, has exchanged 1,250 shares ($1,250,000 aggregate face value) of Series E Redeemable Exchangeable Preferred Stock for 1,213,592 shares of common stock in an agreement reached on October 2, 2007, when the closing price was $1.03 per share. The Preferred Stock had a face value and liquidation preference of $1,000 per share, no dividend preference, and was exchangeable at the holder's option after June 30, 2007, into 6% subordinated notes due three years from the date of exchange.
In addition, Deep Down announced that it has agreed to eliminate an obligation to pay $20,000 per month for the next 28 months, or an aggregate of $560,000, by exchanging this obligation for 543,689 shares of common stock. This agreement was also reached on October 2, 2007. Please reference a news release dated August 14, 2007.
"With this Preferred Stock transaction, we have reduced indebtedness by another $1,810,000, thereby continuing our efforts to strengthen Deep Down's balance sheet and improve the overall liquidity and financial strength of the Company," commented Robert E. Chamberlain, Jr., Deep Down's chairman. "We will continue to pursue those efforts whenever management considers it prudent to do so."