Indalex Holdings Finance, Inc. ("Indalex" or the "Company") announced the successful completion today of an amended and restated credit agreement (the "Amended Credit Agreement"), which allows Indalex to receive a $15 million senior secured term loan (the "Initial Term Loan") from Sun Indalex Finance, LLC ("Lender"), an affiliate of Sun Capital Partners, Inc., and pursue up to $20 million in sale-leaseback transactions. In addition, an incremental $15 million senior secured term loan (together with the Initial Term Loan, the "Term Loans") would be available in the future at the Lender's sole option. Indalex also announced that the Initial Term Loan was completed, and Indalex has received the Initial Term Loan from the Lender.
Timothy R.J. Stubbs, President and Chief Executive Officer, said: "I am delighted to report that we have obtained approval of an amended credit agreement, which will further enhance our revolver availability as we continue the implementation of our Manufacturing Improvement Strategy to position the business not just for short-term market conditions, but also to grow with our customers when market conditions improve. Our strong support from our equity sponsor enables us to quickly drive necessary improvements and efficiencies through our business, something that many of our competitors cannot do during these continued weak market conditions."
Key terms of the Amended Credit Agreement and Term Loans include:
- The addition of a $15 million senior secured term loan from the Lender as part of the existing senior facility and the ability to put in place an incremental $15 million senior secured term loan with substantially the same terms as the Initial Term Loan that would be available in the future at the Lender's sole option.
- The ability to pursue up to $20 million of real estate sales in sale-leaseback transactions.
Under the terms of the Amended Credit Agreement, the proceeds of the Term Loans will pay down the outstanding revolving loan balance under the existing credit facility, and pay fees and expenses herewith, thereby increasing the Company's liquidity.
For additional detail on the terms of the Amended Credit Agreement and the Term Loans, please refer to the Company's 8-K's filed with the Securities and Exchange Commission on May 20 and May 23, 2008.
About Indalex Holdings Finance, Inc. and Indalex Holding Corp.
Indalex Holding Corp., a wholly owned subsidiary of Indalex Holdings Finance Inc., through its operating subsidiaries Indalex Inc. and Indalex Ltd., with headquarters in Lincolnshire, Illinois, is the second largest producer of soft alloy aluminum extrusion products in North America. The company's aluminum extrusion products are widely used throughout industrial, commercial, and residential applications and are customized to meet specific end-user requirements.
The company's North American network includes 12 extrusion facilities, 33 extrusion presses with circle sizes up to 14 inches, a variety of fabrication and close tolerance capabilities, three anodizing operations, two billet casting facilities, and six electrostatic paint lines, including powder coat capability.
For additional information, please visit www.indalex.com.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 190 companies worldwide with combined sales in excess of $40 billion since Sun Capital's inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, New York, as well as affiliates with offices in London, Tokyo, Shenzhen, Paris and Frankfurt. For more information, please visit: www.SunCapPart.com.
Forward-looking information
This release contains forward-looking statements with respect to the financial condition, results of operations and business of the Company. Such items are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. The principal important risk factors and uncertainties include, but are not limited to, the ability to complete any proposed financing transactions and the terms of any such transactions, changes in general economic conditions, aluminum and other material costs, labor costs, interest rates, and other adverse changes in general economic conditions, consumer confidence, competition, currency exchange rates as they affect the Company's Canadian operations, environmental factors, unanticipated legal proceedings, and conditions in end user markets. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
