SafeGuard Health Finishes Restructuring
- Share via
SafeGuard Health Enterprises Inc. said Thursday it has completed a financial restructuring that gives John Hancock Life Insurance Co. effective control of the Aliso Viejo provider of dental and vision care plans.
As part of the arrangement, SafeGuard wiped out $53 million in debt, freeing the company to pursue acquisitions and other business opportunities. Safeguard said in a press release that it converted the debt and accrued interest into preferred stock that carries no dividend but can later be converted into common stock.
As a result of the transaction, John Hancock gains control of 40% of Safeguard’s stock and has put one of its executives, Stephen J. Blewitt, on SafeGuard’s board. Management’s stake in the company shrinks from 42% to 9%, including stock options.
SafeGuard stock gained 25 cents Thursday to close at $1.50 a share in over-the-counter trading.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
