Jan 1, 2008 5:36 PM
Sherborne Controls Nautilus
VANCOUVER, WA -- Nautilus Inc.’s board is now controlled by its largest shareholder, Sherborne Investors, Nautilus confirmed on Monday. At the company’s Dec. 18 shareholder meeting, shareholders voted four Sherborne Investor nominees onto the seven-member board.
The board members met on Monday and voted Edward Bramson, head of Sherborne Investors, as chairman of the board. Bramson is joined by Sherborne nominees Gerard Eastman, Michael Stein and Richard Horn. Incumbent directors are Robert Falcone, Ronald Badie and Marvin Siegert. Falcone, who had been chairman of the board, will remain as president and CEO of the Vancouver, WA-based company.
Removed board members were Evelyn Follit, Peter A. Allen, Diane Neal and Don Keeble.
“We appreciate the support of our fellow shareholders and look forward to working with the new board and management to implement an effective strategy at Nautilus to return it to profitability and establish a platform for future growth,” Bramson said in a joint statement with Nautilus.
In the statement, Falcone said, “I look forward to working with our newly reconstituted board of directors. I believe very strongly in the future of this company and am committed to implementing the necessary actions to restore it to sustainable growth.”
In addition, the Nautilus board on Monday signed a commitment letter with Bank of America, N.A. to replace its current debt facility with an underwritten five-year, $100 million asset-based loan with an accordion feature to increase to $125 million. The agreement is expected to close Jan. 14. In the interim, the company has negotiated a forbearance on its existing debt facility.
“Our new line of credit is expected to provide sufficient liquidity to support our business strategy and the interests of our shareholders,” says Falcone.
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