ST. LOUIS, March 24 /PRNewswire-FirstCall/ -- Belden Inc. today announced an amendment to its $350 million senior secured revolving credit facility. In general, the amendment changes the definition of EBITDA used in the computation of the 3.5 gross debt-to-EBITDA leverage ratio covenant in the agreement and increases the cost of borrowings under the facility by 100 basis points. As a result of the amendment, the Company's debt-to-EBITDA leverage ratio as of December 31, 2008, was 2.2, reduced from 2.9 prior to the amendment. The Company incurred approximately $1.6 million in arrangement, attorney, and consent fees in connection with the amendment.
"This amendment to our revolving credit facility provides the Company with additional flexibility in managing our liquidity as we work through weaker global demand in our served markets," said John Stroup, President and Chief Executive Officer.
Under the revised definition of EBITDA, the Company may adjust its reported earnings in computing EBITDA for (1) share based compensation expenses, (2) the change in deferred margin on revenues from its wireless segment, and (3) certain cash restructuring charges already recognized in 2008 and up to an additional $20 million in cash restructuring charges that may be recognized in 2009.
Forward Looking Statements
Statements in this release other than historical facts are "forward looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. The current global economic slowdown has adversely affected our results of operations and may continue to do so. Turbulence in financial markets may increase our borrowing costs. Some additional factors that may cause actual results to differ from the Company's expectations include demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company's ability to integrate successfully the acquired businesses; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on February 27, 2009. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
Sending All the Right Signals - from industrial automation to data centers, from broadcast studios to aerospace, from cutting-edge wireless communications to consumer electronics, Belden people are committed to delivering the best signal transmission solutions in the world. Belden associates work in copper cable, fiber, wireless technology, connectors, switches and active components to bring voice, video and data to your mission-critical application. With 2008 revenue of $2.0 billion, Belden has manufacturing capability in North America, Europe and Asia. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at http://www.belden.com/.
From: Belden
314.854.8054
