CHARLOTTE, N.C., July 27 /PRNewswire-FirstCall/ -- Polymer Group, Inc. (BULLETIN BOARD: POLGA/POLGB) (PGI) today announced that lenders holding approximately $303.0 million of its approximately $350.0 million term loan and $30.0 million of its $45.0 million committed revolving credit facility elected to extend the maturity dates of their commitments via an amendment and extension transaction.
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The extended term loan will mature in November 2014 and bears an interest rate of LIBOR plus 4.5%. The extended revolving credit facility will mature in November 2013 and bears an interest rate of LIBOR plus 4.5%. If outstanding borrowings under the original term loan tranche that matures November 2012 exceed $10.0 million on August 2012, the new revolving credit facility tranche will mature August 2012.
The amendment will, among other things: -- Allow for additional term loan tranches that extend the maturity date of other term loan tranches under the credit agreement; -- Allow for additional revolving credit facility tranches that extend the maturity date of other revolving credit facility tranches under the credit agreement; -- Permit the incurrence of additional first lien debt in order to refinance term loan tranches under the credit agreement; -- Remove the future step-downs or step-ups in the company's financial covenants; and -- Result in a repayment of $24.0 million of outstanding borrowings under the term loan .
Other terms of the amendment include the establishment of a LIBOR floor of 2.5% for the new term loan and revolving credit facility tranches; price protection for the new term loan tranche requiring a matching yield if any future term loan tranches are established at yields at least 25 basis points above the new term loan tranche; and changes to certain definitions and baskets related to permitted investments, acquisitions and assets sales.
PGI's chief executive officer, Veronica "Ronee" Hagen, stated, "We view our successful completion of this transaction as a reflection of PGI's strong position in our markets and improved financial position. The company will be better positioned and equipped to execute on its long-term strategic plan as a result."
Robert J. Kocourek, chief financial officer, added, "Prudent balance sheet management is a core focus for PGI. The changes in our capital structure have resulted in an improved financial profile and lessen any medium term financing requirements."
Citi acted as sole lead arranger in connection with the amendment and extension. The company also engaged North Sea Partners as financial advisors on the transaction.
The closing of the amendment is subject to typical closing conditions and is expected to occur by the end of this month.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this press release are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forwardlooking statements speak only as of the date of this release. Important factors that could cause actual results to differ materially from those discussed in such forwardlooking statements include: general economic factors including, but not limited to, changes in interest rates, foreign currency translation rates, consumer confidence, trends in disposable income, changes in consumer demand for goods produced, and cyclical or other downturns; cost and availability of raw materials, labor and natural and other resources and the inability to pass raw material cost increases along to customers; changes to selling prices to customers which are based, by contract, on an underlying raw material index; substantial debt levels and potential inability to maintain sufficient liquidity to finance our operations and make necessary capital expenditures; inability to meet existing debt covenants; achievement of objectives for strategic acquisitions and dispositions; inability to achieve successful or timely start-up on new or modified production lines; reliance on major customers and suppliers; domestic and foreign competition; information and technological advances; risks related to operations in foreign jurisdictions; and changes in environmental laws and regulations. Investors and other readers are directed to consider the risks and uncertainties discussed in documents filed by Polymer Group, Inc. with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
http://www.polymergroupinc.com/ For further information, please contact: Dennis Norman Vice President - Strategy & Corporate Development (704) 697-5186 normand@pginw.com
Polymer Group, Inc.
CONTACT: Dennis Norman, Vice President - Strategy & Corporate
Development of Polymer Group, Inc., +1-704-697-5186, normand@pginw.com
Web Site: http://www.polymergroupinc.com/
