Altra Industrial Motion Corp. (Nasdaq: AIMC) (“Altra” or the
“Company”), a leading global manufacturer and supplier of motion
control, power transmission and automation products, today
announced that the Company has entered into a new five-year credit
agreement among the Company and the lenders party to the credit
agreement from time to time, which consists of a new $400 million
term loan and a new $1 billion revolving credit facility. The
Company will use the proceeds to repay in full all amounts
outstanding on its existing term loan and revolving credit
facilities, which have been terminated, and for general corporate
purposes, including acquisitions.
“We are very pleased with the results of this refinancing,” said
Carl Christenson, Altra’s Chairman and Chief Executive Officer.
“Based on the current interest rate environment, we expect this
transaction will have the potential to provide us with a reduction
in our annual interest expense of approximately $4-$5 million.
Moreover, this transaction furthers our efforts to strengthen our
balance sheet and provides us with the flexibility and capacity to
pursue our long-term organic and acquisition growth
strategies.”
About Altra Industrial Motion Corp.
Altra Industrial Motion Corp. is a premier industrial global
manufacturer and supplier of highly engineered motion control,
automation, power transmission, and engine braking systems and
components. Altra's portfolio consists of 27 well-respected brands
including Bauer Gear Motor, Boston Gear, Jacobs Vehicle Systems,
Kollmorgen, Portescap, Stromag, Svendborg Brakes, TB Wood's,
Thomson and Warner Electric. Headquartered in Braintree,
Massachusetts, Altra has over 9,000 employees and 48 production
facilities in 16 countries around the world.
Forward-Looking Statements
All statements, other than statements of historical fact
included in this release are forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, any
statement that may predict, forecast, indicate or imply future
results, performance, achievements or events. Forward-looking
statements can generally be identified by phrases such as
“believes,” “expects,” “potential,” “continues,” “may,” “should,”
“seeks,” “predicts,” “anticipates,” “intends,” “projects,”
“estimates,” “plans,” “could,” “designed”, “should be,” and other
similar expressions that denote expectations of future or
conditional events rather than statements of fact. Forward-looking
statements also may relate to strategies, plans and objectives for,
and potential results of, future operations, financial results,
financial condition, business prospects, growth strategy and
liquidity, and are based upon financial data, market assumptions
and management's current business plans and beliefs or current
estimates of future results or trends available only as of the time
the statements are made, which may become out of date or
incomplete. Forward looking statements are inherently uncertain,
and investors must recognize that events could differ significantly
from our expectations. These statements include, but may not be
limited to, statements regarding (a) management’s expectations
regarding reductions in interest expense, (b) the Company's efforts
to strengthen its balance sheet, and (c) the Company's ability to
pursue and execute its long-term organic and acquisition growth
strategies.
In addition to the risks and uncertainties noted in this
release, there are certain factors that could cause actual results
to differ materially from those anticipated by some of the
statements made. These include: (1) competitive pressures, (2)
changes in political and economic conditions in the United States
and abroad and the cyclical nature of our markets, (3) loss of
distributors, (4) the ability to develop new products and respond
to customer needs, (5) risks associated with international
operations, including currency risks, and the effects of tariffs
and other trade actions taken by the United States and other
countries, (6) accuracy of estimated forecasts of OEM customers and
the impact of the current global economic environment on our
customers, (7) risks associated with a disruption to our supply
chain, (8) fluctuations in the costs of raw materials used in our
products, (9) product liability claims, (10) work stoppages and
other labor issues involving the Company’s facilities or the
Company’s customers, (11) changes in employment, environmental, tax
and other laws and changes in the enforcement of laws, (12) loss of
key management and other personnel, (13) risks associated with
compliance with environmental laws, (14) the ability to
successfully execute, manage and integrate key acquisitions and
mergers, (15) failure to obtain or protect intellectual property
rights, (16) impairment or reduction of goodwill or intangible
assets, (17) failure of operating equipment or information
technology infrastructure, including cyber-attacks or other
security breaches, and failure to comply with data privacy laws or
regulations, (18) risks associated with our debt leverage, (19)
risks associated with restrictions contained in the agreements
governing Altra’s $400 million aggregate principal amount of 6.125%
senior notes due 2026 and Altra’s revolving credit facility and
term loan facility, (20) risks associated with compliance with tax
laws, (21) risks associated with the global recession and
volatility and disruption in the global financial markets, (22)
risks associated with implementation of our enterprise resource
planning system, (23) risks associated with the A&S acquisition
and integration and other acquisitions, (24) risks associated with
certain minimum purchase agreements we have with suppliers, (25)
risks related to our relationships with strategic partners, (26)
our ability to offset increased commodity and labor costs with
increased prices, (27) risks associated with our exposure to
variable interest rates and foreign currency exchange rates, (28)
swap counterparty credit risk, including interest rate swap
contracts, cross-currency swap contracts and hedging arrangements,
(29) risks associated with our exposure to renewable energy
markets, (30) risks related to regulations regarding conflict
minerals, (31) risks related to restructuring and plant
consolidations, (32) risks related to our acquisition of A&S,
including (a) the possibility that we may be unable to achieve
expected synergies and operating efficiencies in connection with
the transaction within the expected time-frames or at all and to
successfully integrate A&S, (b) expected or targeted future
financial and operating performance and results, (c) operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients or suppliers) being greater than
expected following the transaction, (d) our ability to retain key
executives and employees, (e) slowdowns or downturns in economic
conditions generally and in the markets in which the A&S
businesses participate specifically, (f) lower than expected
investments and capital expenditures in equipment that utilizes
components produced by us or A&S, (g) lower than expected
demand for our or A&S’s repair and replacement businesses, (h)
our ability to successfully integrate the merged assets and the
associated technology and achieve operational efficiencies, (i) the
integration of A&S being more difficult, time-consuming or
costly than expected, (j) the inability to undertake certain
corporate actions that otherwise could be advantageous to comply
with certain tax covenants, (k) potential unknown liabilities and
unforeseen expenses related to the acquisition and (l) the impact
on our internal controls and compliance with the regulatory
requirements under the Sarbanes-Oxley Act of 2002, (33) exposure to
United Kingdom political developments, including the effect of its
withdrawal from the European Union, and the uncertainty surrounding
the implementation and effect of Brexit and related negative
developments in the European Union and elsewhere, (34) Altra’s
ability to achieve the efficiencies, savings and other benefits
anticipated from its cost reduction, margin improvement,
restructuring, plant consolidation and other business optimization
initiatives, (35) the risks associated with transitioning from
LIBOR to a replacement alternative reference rate, (36) the scope
and duration of the COVID-19 global pandemic and its impact on
global economic systems and our employees, sites, operations,
customers and supply chain, including the impact of the pandemic on
manufacturing and supply capabilities throughout the world, (37)
adverse conditions in the credit and capital markets limiting or
preventing the Company’s and its customers’ and suppliers’ ability
to borrow or raise capital, (38) the Company’s ability to invest in
new technologies and manufacturing techniques and to develop or
adapt to changing technology and manufacturing techniques, (39)
defects, quality issues, inadequate disclosure or misuse with
respect to our products and capabilities, (40) changes in labor or
employment laws, (41) the Company’s ability to recruit, retain and
motivate key sales, marketing or engineering personnel, (42)
unplanned repairs or equipment outages, (43) changes in the
Company’s tax rates, including enactment of the Tax Cuts and Jobs
Act of 2017, or exposure to additional income tax liabilities or
assessments, as well as audits by tax authorities, (44) the risks
associated with the Company’s ability to successfully divest or
otherwise dispose of businesses that are deemed not to fit with our
strategic plan or are not achieving the desired return on
investment and (45) other risks, uncertainties and other factors
described in the Company's quarterly reports on Form 10-Q and
annual reports on Form 10-K and in the Company's other filings with
the U.S. Securities and Exchange Commission (SEC) or in materials
incorporated therein by reference. Except as required by applicable
law, Altra does not intend to update or alter its forward-looking
statements, whether as a result of new information, future events
or otherwise.
AIMC-GCONTACT:Altra Investor Relations781-917-0600Email:
ir@altramotion.com
Altra Industrial Motion (NASDAQ:AIMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Altra Industrial Motion (NASDAQ:AIMC)
Historical Stock Chart
From Apr 2023 to Apr 2024