Bell Microproducts Completes Agreements With All Lenders to Extend Credit Facilities to 2010 and Beyond
15 October 2008 - 11:00PM
PR Newswire (US)
SAN JOSE, Calif., Oct. 15 /PRNewswire-FirstCall/ -- Bell
Microproducts Inc. (Pink Sheets: BELM) today confirmed that it has
completed agreements with its major lending groups to expand the
terms of its three key credit facilities. The Company's financing
agreement with its European bank group led by Bank of America, NA
provides up to 75 million pounds Sterling in revolving credit
through October 2011. The Company's primary lending facility in the
Americas, which was expanded last month, provides up to $204
million through September 2010. In August, the Company announced
that it had restructured a portion of its existing term debt held
by the Retirement Systems of Alabama totaling approximately $57
million, extending the payment schedule through December 2013.
"With the completion of these three credit facility agreements, we
have concluded our near term financing objectives," said W. Donald
Bell, President and Chief Executive Officer of Bell Microproducts.
"While we expect to see some slowdown in sales due to the current
economic environment, we are well positioned to navigate through
the economic challenges that all businesses currently face. We
appreciate the continued support and confidence of our lenders."
About Bell Microproducts Bell Microproducts (OTC:BELM.PK) is an
international, value-added distributor of a wide range of high-tech
products, solutions and services, including storage systems,
servers, software, computer components and peripherals, as well as
maintenance and professional services. An industry-recognized
specialist in storage products, the company is one of the world's
largest storage-centric value-added distributors. Bell
Microproducts is uniquely qualified with deep technical and
application expertise to service a broad range of information
technology needs. From design to deployment, its products are
available at any level of integration, from components to subsystem
assemblies and fully-integrated, tested and certified system
solutions. More information can be found in the company's SEC
filings, or by visiting the Bell Microproducts Web site at
http://www.bellmicro.com/. Safe Harbor Statement This release
contains forward-looking statements that are based on the current
opinions and estimates of management, and speak only as of the date
on which they are made. Such forward-looking statements include,
but are not limited to, the accessibility to the borrowing
availability under each of the revolving lines of credit, the
conclusion of the Company's near term financing objectives,
management's expectation that there will be a slowdown in sales due
to the current economic environment, and management's belief that
the Company is well positioned to navigate through the economic
challenges that all businesses currently face. Actual results could
differ materially from such statements as a result of many risks
and uncertainties, including: global economic and credit conditions
may worsen and/or exist for a period of time longer than currently
anticipated; the Company's assets which determine the amount of the
availability under the credit facilities may decrease thereby
decreasing the borrowing availability; the Company may be unable to
comply with the terms and conditions set forth in the lending
agreements; if economic conditions deteriorate beyond management's
expectations it may necessitate the Company seeking additional
short-term and/or long-term financing; the slowdown in sales
anticipated by management may be greater than currently
anticipated; a slowdown in sales may occur for reasons other than
the current economic environment; the economic challenges faced by
the Company may be more severe than that faced by other businesses
generally; the Company may be unable to deliver its consolidated
audited financial statements by the dates required by the lenders
and be unable to secure additional waivers; the activities
necessary to complete the restatement could divert significant
management time and attention away from the operations of the
Company; and the costs to be incurred by the Company for
extraordinary legal, accounting, and other professional fees
related to the restatement may be significant. Investors should
also take into account the risks described in the Company's
periodic reports filed with the Securities and Exchange Commission
when making investment decisions. Investors are cautioned not to
place undue reliance on these forward-looking statements, and the
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Bell Microproducts Inc.
CONTACT: Rob Damron, Investor Relations Representative of Bell
Microproducts Inc., +1-414-224-1668, Web site:
http://www.bellmicro.com/
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