American Italian Pasta Company Enters New $295 Million, Five-Year Senior Credit Facility
16 3월 2006 - 6:05AM
PR Newswire (US)
KANSAS CITY, Mo., March 15 /PRNewswire-FirstCall/ -- American
Italian Pasta Company (NYSE:PLB) announced today that it has
entered into a new $295 million, five-year senior credit facility.
The new facility replaces a $290 million senior credit facility
that would have expired on October 2, 2006. As a result of the
financing, the Company is no longer in default of its prior credit
agreement and is in compliance with all covenant requirements. "The
completion of our refinancing represents a significant milestone
for the Company," said Jim Fogarty, Chief Executive Officer. "The
new long-term financing strengthens our capital structure and
provides us a stable platform from which to execute our strategies
and business initiatives." The new credit facility is comprised of
a $265 million term loan and a $30 million revolving credit
facility. The facility is secured by substantially all of the
Company's assets and provides for interest at either LIBOR rate
plus 600 basis points or at an alternate base rate calculated as
prime rate plus 500 basis points. The facility has a five-year term
expiring in March 2011 and does not require any scheduled principal
payments. Principal pre-payments are required if certain events
occur in the future, including the sale of certain assets, issuance
of equity and the generation of "excess cash flow" (as defined in
the credit agreement). The agreement also contains customary
financial covenants and certain other restrictions. Banc of America
Securities LLC acted as sole arranger for the new credit facility
and has syndicated a portion of the facility to a group of
institutional lenders. Bank of America is a lender and also serves
as the administrative agent under the facility. In connection with
the financing, the Company has reduced its outstanding debt from
$281 million to $267 million (representing the term loan balance
under the new credit facility of $265 million and the existing
Italian subsidiary debt of $2 million). Subsequent to the
financing, outstanding debt net of cash on hand is $262 million. As
of March 15, 2006, after giving effect to the new credit facility,
the Company has liquidity resources of $33 million, comprised of
$28 million availability under the new revolving credit facility
(reflecting approximately $2 million of letters of credit issued
under the $30 million revolving credit facility) and cash on hand
of approximately $5 million. Fogarty concluded, "Our new financing
represents a vote of confidence from our new lending group who see
in AIPC what we see: a company with a solid operating base. As we
continue to further strengthen our operating environment, this
refinancing sends an important message to our employees, customers,
suppliers and shareholders. The completion of this transaction
allows us to focus on our most important job -- providing quality
products and excellent service to our customers." Founded in 1988
and based in Kansas City, Missouri, American Italian Pasta Company
is the largest producer and marketer of dry pasta in North America.
The Company has four plants that are located in Excelsior Springs,
Missouri; Columbia, South Carolina; Tolleson, Arizona and
Verolanuova, Italy. The Company has approximately 600 employees
located in the United States and Italy. DATASOURCE: American
Italian Pasta Company CONTACT: George Shadid, EVP & Chief
Financial Officer of American Italian Pasta Company,
+1-816-584-5621, or Web site: http://www.aipc.com/
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