Shares of Rand Logistics Inc. (RLOG, Financial) traded lower on Monday, continuing Friday's losses, following the announcement it will be acquired by American Industrial Partners. Under the terms of the deal, the latter will convert all of Rand Logistics' second lien debt into 100% of the new common equity of a reorganized company. As a result, the company will eliminate $90 million in outstanding debt and also reduce annual interest expenses.
“We are pleased that we have reached an agreement, which will allow Rand to significantly reduce its debt burden and partner with a leading private equity firm,” President and CEO Edward Levy said. He said the agreement will improve the balance sheet and positions the company for further growth.
Shares of Square Inc. (SQ, Financial) opened lower on Monday after analyst Mark Palmer downgraded the stock to sell from neutral. He also cut the stock price target to $30, which is almost 40% lower than Friday's closing price.
On the other hand, shares of Teva Pharmaceutical Industries Ltd. (TEVA, Financial) rose more than 6% after announcing a new organizational structure. It will provide the specific restructuring plan in December. The restructuring will include reducing 10% of its U.S. workforce and about 25% internationally.
President and CEO KĂĄre Schultz said the new structure "will enable stronger alignment and integration between R&D, operations and the commercial regions, allowing us to become a more agile, lean and profitable company".
Disclosure: The author holds no positions in any stocks mentioned.
