CLEVELAND, March 9 /PRNewswire-FirstCall/ -- OM Group, Inc. today announced it has entered into a new $250 million secured revolving credit facility with a syndicate of lenders, led by PNC Bank, N.A. The new facility replaces the previous $100 million facility which was due to expire in December of 2010.
The new, three-year revolving credit facility includes an "accordion" feature under which OMG may increase the availability by $75 million to a maximum of $325 million, subject to certain conditions and discretionary approval of those lenders whose commitments would be increased. OMG has the option to specify that interest be calculated based either on LIBOR plus 2.25% to 3.0%, or a base rate plus 1.25% to 2.0%. Under the new credit facility, OMG borrowed $150 million, which repaid loans previously incurred to fund the EaglePicher Technologies, LLC acquisition completed on January 29, 2010.
"We are pleased to have this new credit facility in place, which will provide additional liquidity and flexibility to meet our strategic growth objectives," said Joseph M. Scaminace, chairman and chief executive officer. "The ability to secure this funding from our lending partners represents their confidence in our growth prospects and management's transformation strategy."
ABOUT OM GROUP, INC.
OM Group, Inc. is a leading global solutions provider of specialty chemicals, advanced materials, electrochemical energy storage and unique technologies crucial to enabling our customers to meet increasingly stringent market and application requirements. The company serves a wide variety of sectors, including rechargeable batteries, electronic devices, cutting tools, petrochemical catalysts, electronics manufacturing, industrial coatings, defense, aerospace, and medical devices. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit the company's Web site at http://www.omgi.com/.
FORWARD-LOOKING STATEMENTS
The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: the potential impact that the current global economic and financial market crisis may have on our business and operations, including future goodwill impairments; the direction and pace of our strategic transformation, including identification of and the ability to finance potential acquisitions; the operation of our critical business facilities without interruption; the speed and sustainability of price changes in cobalt; the potential for lower of cost or market write-downs of the carrying value of inventory necessitated by decreases in the market price of cobalt or the selling prices of the Company's finished products; the availability of competitively priced supplies of raw materials, particularly cobalt; the demand for metal-based specialty chemicals and products in the Company's markets; the impact of environmental regulations on our operating facilities and the impact of new or changes to current environmental, health and safety laws on our products and their use by our customers; the effect of fluctuations in currency exchange rates on the Company's international operations; the effect of non-currency risks of investing and conducting operations in foreign countries, including political, social, economic and regulatory factors; the effect of changes in domestic or international tax laws; and the general level of global economic activity and demand for the Company's products.
OM Group, Inc.
CONTACT: Troy Dewar, director, investor relations, +1-216-263-7765
Web Site: http://www.omgi.com/
