JACKSONVILLE, Fla., June 23 /PRNewswire-FirstCall/ -- Interline Brands, Inc. ("Interline Brands" or the "Company"), a leading distributor and direct marketer of maintenance, repair and operations products, announced today that its operating subsidiary, Interline Brands, Inc., a New Jersey corporation ("Interline New Jersey"), has completed its offering of $200 million aggregate principal amount of its 8 1/8% Senior Subordinated Notes Due 2014. Interline New Jersey also completed its new credit facility, which consists of a $100 million 7-year term loan, a $130 million 7-year delayed draw term loan and a $100 million 6-year revolving credit facility. The delayed draw term loan is available solely to fund the previously announced acquisition of substantially all of the assets of American Sanitary Incorporated and the fees and expenses related to the acquisition. The acquisition is expected to close in July 2006.
The net proceeds from the offering of senior subordinated notes and initial borrowings under the new credit facility were used to refinance Interline New Jersey's existing indebtedness, including its prior credit facility and its 11 1/2% Senior Subordinated Notes Due 2011, and to pay related fees and expenses. All of the outstanding 11 1/2% Senior Subordinated Notes due 2011 were purchased pursuant to the previously announced tender offer.
Michael Grebe, Interline's President and Chief Executive Officer, commented, "We are very pleased with the execution on these transactions. This comprehensive refinancing adds flexibility, extends maturities, reduces our cost of capital and positions us well for future growth. Excluding charges associated with our early extinguishment of debt, this refinancing effort is expected to be two cents accretive to earnings in the second half of 2006."
About Interline Brands
Interline Brands is a leading national distributor and direct marketer with headquarters in Jacksonville, Florida. Interline Brands provides maintenance, repair and operations (MRO) products to approximately 160,000 professional contractors, facilities maintenance professionals, and specialty distributors across North America and Central America.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, forward-looking statements. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "projects," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions. Similarly, statements herein that describe the Company's and/or Interline New Jersey's outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements include the failure to close the previously announced American Sanitary acquisition and realize expected benefits from the transaction and obtaining debt financing on favorable terms, fluctuations in the cost of raw materials, fuel prices or in currency exchange rates, material facilities systems disruptions and shutdowns, the failure to locate, acquire and integrate acquisition candidates, the dependence on key employees and other risks described in the Company's Registration Statement on Form S-3 (File No. 333-134415), its Annual Report on Form 10-K for the fiscal year ended December 30, 2005 and its Quarterly Report on Form 10-Q for the three months ended March 31, 2006. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time.
CONTACT: Tom Tossavainen, Chief Financial Officer
PHONE: 904-421-1441
