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ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 7. DEBT
At September 30, 1995 and 1994, Zapata's consolidated debt consisted of the
following:
<TABLE>
<CAPTION>
1995 1994
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(IN THOUSANDS)
<S> <C> <C>
Senior debt:
Norex unsecured notes due in 1996 interest at 8.5%............ $ 4,796 $17,500
ING Bank revolving credit facility for marine protein due June
30, 1997 interest at prime plus 1%, 9.75% at September 30,
1995, collateralized by certain current assets............... 10,000 --
U.S. government-guaranteed obligations:
Amounts due in installments through 2009, interest from 6.63%
to 6.85%.................................................... 7,626 7,961
Amounts due in installments through 2014, interest at
Eurodollar rates plus .45%, 6.33% and 5.51% at September 30,
1995 and 1994, respectively................................. 1,528 1,588
Other debt at 8.1% and 7.7% at September 30, 1995 and 1994,
respectively................................................. 992 200
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24,942 27,249
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Subordinated debt:
10 1/4% debentures due 1997................................... 15,621 15,621
10 7/8% debentures due 2001................................... 9,872 10,242
Malcolm I. Glazer Trust unsecured subordinated promissory note
due in 1997 at prime, 8.75% at September 30, 1995............ 3,181 --
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28,674 25,863
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Total debt...................................................... 53,616 53,112
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Less current maturities......................................... 16,148 531
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Long-term debt.................................................. $37,468 $52,581
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The fair value of total long-term debt at September 30, 1995 and 1994
approximates book value.
On May 17, 1993, Zapata completed certain financial transactions with Norex
Drilling Ltd. ("Norex Drilling"), a wholly owned subsidiary of Norex America,
Inc. ("Norex America" and, collectively with Norex Drilling and other
affiliates, "Norex"), through which Zapata raised $111.4 million from the
issuance of debt and equity pursuant to a Second Amended and Restated Master
Restructuring Agreement dated as of April 16, 1993, as amended (the "Norex
Agreement"). The Norex Agreement enabled Zapata to refinance its then-
outstanding senior debt and substantially reduce the amount of required debt
service payments for the following two years.
Under the terms of the Norex Agreement, Zapata issued $50.0 million of senior
secured notes and $32.6 million of senior convertible notes to Norex, each
bearing interest at 13%. In addition, Norex purchased 3 million shares of
Common Stock for $11.25 million and 17.5 million shares of $1 Preference Stock
for $17.5 million. The $1 Preference Stock was to pay dividends at an annual
rate of 8.5% and was exchangeable into 673,077 shares of Zapata's Tidewater
common stock at the option of Norex. In August 1993, Norex exchanged all of its
$1 Preference Stock for $17.5 million aggregate principal amount of 8.5%
unsecured exchangeable note, maturing May 16, 1996. An officer of Norex was
elected to the Zapata Board of Directors in July 1993 and was an executive
officer of Zapata from July 1994 to December 1994.
In December 1993, $73.7 million of the proceeds from the sale of 3.75 million
shares of Zapata's Tidewater common stock were used to prepay $68.5 million of
the Company's 13% senior indebtedness to
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