Exhibit 99.1
URSI ANNOUNCES THAT KPS SPECIAL SITUATIONS FUND HAS COMPLETED CONTROLLING
INVESTMENT.
Albany, NY, July 21, 2000/PR Newswire/--United Road Services, Inc. (OTC BB:
URSI- news), a leading provider of national transport and regional towing and
recovery services, announced today that KPS Special Situations Fund, L.P. has
made a controlling investment in United Road Services, Inc. Approval of this
transaction was received yesterday at a special meeting of the Company's
stockholders in New York City. Holders of approximately 81% of the shares of
common stock that were voted were in favor of the transaction.
KPS invested $25 million and GE Capital invested $2 million in exchange for
participating, convertible preferred stock issued by URSI, collectively
convertible into approximately 75% of the Company's common stock. In connection
with the transaction, KPS has the right to designate a majority of the Company's
Board of Directors as long as KPS continues to own specified amounts of
preferred stock. KPS has also arranged a new $100 million dollar credit facility
for the Company through GE Capital.
The existing management team led by Mr. Gerald Riordan, Chief Executive Officer,
will continue to operate the Company. Mr. Riordan commented, "I am pleased with
the completion of the KPS transaction and the refinancing agented by GE Capital.
Our management team and employees are looking forward to working with KPS and
our new Board of Directors to return United Road Services to profitable growth."
Michael Psaros, a principal of KPS, added, "This transaction marks a new
beginning for United Road Services that will allow the Company to realize its
potential as a premier national provider of transportation, towing and recovery
services. We have great confidence in the Company's senior management team and
believe that our equity investment, coupled with a new credit facility, will
provide the Company with the capital resources needed to execute its turnaround
plan. We are excited about this investment and look forward to working with the
Company's employees to complete the integration of the Company's assets, deliver
superior service to our customers and maximize value for the Company's
stockholders."
KPS Special Situations Fund, L.P. founded in 1998 by Eugene Keilin, Michael
Psaros and David Shapiro, is a New York City based private equity fund with over
$210 million of committed capital that focuses on constructive investing in
restructurings, turnarounds and other special situations.
Formed in July 1997, United Road Services, Inc. has a network of 40 divisions
located in 20 states. The Company's broad range of services include towing,
impounding and storing motor vehicles, conducting lien sales and auctions of
abandoned vehicles and transporting new and used vehicles and heavy construction
equipment.
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This release contains forward-looking statements. These statements are subject
to certain risks and uncertainties that could cause actual results to differ
materially from those anticipated in the forward-looking statements. Readers
should not place undue reliance on forward-looking statements, which reflect
management's view only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect
subsequent events of circumstances. Readers should carefully review the risk
factors described in documents the Company files from time to time with the
Securities and Exchange Commission.
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