Barnes Group Inc. (NYSE: B) today announced that it has
completed a restructuring of its international operations, finalized
an Amended and Restated Credit Facility Agreement, and amended terms
of its domestic senior note agreements.
The restructuring of the Company provides a number of key features including: reduction of refinancing risk, increased financial flexibility, reduced borrowing costs, and the ability of U.S. bank lenders to participate directly in the global expansion of the Company. It also facilitates the Company's ability to efficiently expand its global operations.
"The completed restructuring is essential for our continued global expansion," said William C. Denninger, Senior Vice President and Chief Financial Officer. "The new structure provides rapid financing through efficient deployment of cash to support global operations. These changes provide the necessary financial flexibility to improve the strength of our balance sheet, utilize cash where it is needed, and will enable us to continue to generate balanced and sustainable profitable growth," continued Denninger.
The Amended and Restated Senior Credit Facility Agreement extends the maturity of the Company's revolving credit facility by 19 months to January 11, 2011, reduces the loan spread on its LIBOR-based borrowings by 0.25%, increases the Company's permitted total debt from 3.25 times EBITDA to 4.00 times EBITDA, and permits the Company's new international Swiss holding company, Barnes Group Switzerland GmbH, to borrow directly under the facility. Lenders in the new revolving credit facility have also entered into an inter-creditor agreement with the domestic holders of the Company's senior notes.
In addition, amendments to the Company's domestic senior note agreements have eliminated restrictions on borrowings of foreign subsidiaries whose lenders are parties to the inter-creditor agreement.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal components and assemblies and a distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut, Barnes Group consists of three businesses with 2004 sales of $994.7 million: Barnes Distribution, an international, full-service distributor of maintenance, repair, operating, and production supplies; Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs and a global supplier of retaining rings, reed valves, shock discs, and injection-molded plastic components; and Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and components for commercial and military aircraft engines, airframes, and land-based industrial gas turbines. Over 6,000 dedicated employees at more than 60 locations worldwide contribute to Barnes Group Inc.'s success.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. The risks and uncertainties, which are described in our periodic filings with the Securities and Exchange Commission, include, among others, uncertainties arising from the behavior of financial markets; future financial performance of the industries or customers that we serve; changes in market demand for our products and services; integration of acquired businesses; changes in raw material prices and availability; uninsured claims; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, regulatory and public health nature. We assume no obligation to update our forward-looking statements.
The restructuring of the Company provides a number of key features including: reduction of refinancing risk, increased financial flexibility, reduced borrowing costs, and the ability of U.S. bank lenders to participate directly in the global expansion of the Company. It also facilitates the Company's ability to efficiently expand its global operations.
"The completed restructuring is essential for our continued global expansion," said William C. Denninger, Senior Vice President and Chief Financial Officer. "The new structure provides rapid financing through efficient deployment of cash to support global operations. These changes provide the necessary financial flexibility to improve the strength of our balance sheet, utilize cash where it is needed, and will enable us to continue to generate balanced and sustainable profitable growth," continued Denninger.
The Amended and Restated Senior Credit Facility Agreement extends the maturity of the Company's revolving credit facility by 19 months to January 11, 2011, reduces the loan spread on its LIBOR-based borrowings by 0.25%, increases the Company's permitted total debt from 3.25 times EBITDA to 4.00 times EBITDA, and permits the Company's new international Swiss holding company, Barnes Group Switzerland GmbH, to borrow directly under the facility. Lenders in the new revolving credit facility have also entered into an inter-creditor agreement with the domestic holders of the Company's senior notes.
In addition, amendments to the Company's domestic senior note agreements have eliminated restrictions on borrowings of foreign subsidiaries whose lenders are parties to the inter-creditor agreement.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal components and assemblies and a distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut, Barnes Group consists of three businesses with 2004 sales of $994.7 million: Barnes Distribution, an international, full-service distributor of maintenance, repair, operating, and production supplies; Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs and a global supplier of retaining rings, reed valves, shock discs, and injection-molded plastic components; and Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and components for commercial and military aircraft engines, airframes, and land-based industrial gas turbines. Over 6,000 dedicated employees at more than 60 locations worldwide contribute to Barnes Group Inc.'s success.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. The risks and uncertainties, which are described in our periodic filings with the Securities and Exchange Commission, include, among others, uncertainties arising from the behavior of financial markets; future financial performance of the industries or customers that we serve; changes in market demand for our products and services; integration of acquired businesses; changes in raw material prices and availability; uninsured claims; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, regulatory and public health nature. We assume no obligation to update our forward-looking statements.