July 14 (Reuters) - Colabor Group Inc GCL.TO :
* Colabor Group announced comprehensive recapitalization transactions to strengthen its balance sheet and reduce future interest costs
* Recapitalization transactions will allow Colabor to reduce its level of indebtedness by approximately $47.5 million
* Of proceeds from rights offering, $17.5 million will be used to reduce corporation's subordinated loan
* Extension for 3 years of current senior credit facilities, reduction of outstanding balance by approximately $30 million
* Says recapitalization transaction to extend maturity date of all debt by 3 to 5 years
* Of proceeds from rights offering approximately $30 million will be used to pay amounts outstanding under credit facilities
* Recapitalization transactions will allow Colabor to extend maturity date of all debt by 3 to 5 years
* Zucker currently holds about 11.8% of outstanding common shares and approximately 2.6% of outstanding convertible debentures
* As a result of recapitalization transactions, Zucker may hold up to approximately 17.8% of outstanding common shares. Source text for Eikon: ID:nCCN3lG7Bf Further company coverage: GCL.TO
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