Amadeusz Juskowiak

Prepaid legal ppd gets ich ich financing

PrePaid Legal Services Inc said it has signed a letter of intent under which it would receive financing from ICH Corp

The company said under the proposed transaction ICH would loan it up to 100 mln dlrs and the loan balance would be convertible at any time by either party into PrePaid common stock at 11 dlrs per share In addition it said it would grant ICH a fiveyear option to purchase new shares at the same price It said the option would enable ICH to acquire up to 500 pct plus one share of PrePaid common

PrePaid said until expiration of the option and as long as PrePaid maintained a mutually agreeable combined loss and expense ratio ICH would on PrePaids request exercise as much of the option as may be necessary to meet PrePaids funding needs

The company said ICH has requested the right to buy 90909 PrePaid shares from PrePaid chairman Harland C Stoneciphjer for 11 dlrs each Stonecipher now owns or has the right to acquire 1965269 PrePaid shares and will agree to restrictions on the sale of his remaining shares it said The company saiod Stonecipher will remain chairman

PrePaid said the transactions are subject to approval by boards of both comnpanies and regulatory agencies

Reuter