Pemco Aviation Group Announces New Credit Agreement with Lenders and Sale of Pemco Engineers Subsidiary
16 October 2006 - 11:15PM
Business Wire
Pemco Aviation Group, Inc. (NASDAQ: PAGI) announced today that it
has finalized the credit agreement with its lenders, Wachovia Bank
and Compass Bank. The new revolving credit facility will extend
until August 31, 2007 and provides for increases if and when Pemco
is awarded the new KC-135 PDM contract with the United States Air
Force. The existing credit line expired on October 15 of this year.
Randy Shealy, Senior Vice President and Chief Financial Officer of
Pemco Aviation stated, �We believe the new credit line with
Wachovia and Compass Banks provides Pemco with the flexibility
needed to operate in a very challenging and competitive
environment. We are pleased to have Wachovia and Compass�s
continuing support as partners in the future of Pemco.� Pemco also
announced that it has completed the sale of its California
subsidiary, Pemco Engineers, Inc. to Global Aerospace Technology
Corporation. Mr. Shealy said, �The sale of Pemco Engineers to
Global Aerospace assures the continuing quality of support products
for cargo conversions. We are confident they will remain on the
cutting edge of new technology and provide our customers with
unparalleled support going forward.� Pemco Aviation Group, with
executive offices in Birmingham, Alabama, and facilities in Alabama
and California, performs maintenance and modification of aircraft
for the U.S. Government and for foreign and domestic commercial
customers. The Company also provides aircraft parts and support and
engineering services, in addition to developing and manufacturing
aircraft cargo systems, rocket vehicles and control systems, and
precision components. For more information go to
www.pemcoaviationgroup.com. This press release contains
forward-looking statements made in reliance on the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements may be identified by their use of words,
such as "believe," "expect," "intend" and other words and terms of
similar meaning, in connection with any discussion of the Company's
prospects, financial statements, business, financial condition,
revenues, results of operations or liquidity. Factors that could
affect the Company's forward-looking statements include, among
other things: changes in global or domestic economic conditions;
the loss of one or more of the Company's major customers; the
Company's ability to obtain additional contracts and perform under
existing contracts; the outcome of pending and future litigation
and the costs of defending such litigation; financial difficulties
experienced by the Company's customers; potential environmental and
other liabilities; the inability of the Company to obtain
additional financing; material weaknesses in the Company�s internal
control over financial reporting; regulatory changes that adversely
affect the Company's business; loss of key personnel; and other
risks detailed from time to time in the Company's SEC reports,
including its Annual Report on Form 10-K for the fiscal year ended
December 31, 2005. The Company cautions readers not to place undue
reliance on any forward-looking statements, which speak only as of
the date on which they are made. The Company does not undertake any
obligation to update or revise any forward-looking statements and
is not responsible for changes made to this release by wire
services or Internet services. Pemco Aviation Group, Inc. (NASDAQ:
PAGI) announced today that it has finalized the credit agreement
with its lenders, Wachovia Bank and Compass Bank. The new revolving
credit facility will extend until August 31, 2007 and provides for
increases if and when Pemco is awarded the new KC-135 PDM contract
with the United States Air Force. The existing credit line expired
on October 15 of this year. Randy Shealy, Senior Vice President and
Chief Financial Officer of Pemco Aviation stated, "We believe the
new credit line with Wachovia and Compass Banks provides Pemco with
the flexibility needed to operate in a very challenging and
competitive environment. We are pleased to have Wachovia and
Compass's continuing support as partners in the future of Pemco."
Pemco also announced that it has completed the sale of its
California subsidiary, Pemco Engineers, Inc. to Global Aerospace
Technology Corporation. Mr. Shealy said, "The sale of Pemco
Engineers to Global Aerospace assures the continuing quality of
support products for cargo conversions. We are confident they will
remain on the cutting edge of new technology and provide our
customers with unparalleled support going forward." Pemco Aviation
Group, with executive offices in Birmingham, Alabama, and
facilities in Alabama and California, performs maintenance and
modification of aircraft for the U.S. Government and for foreign
and domestic commercial customers. The Company also provides
aircraft parts and support and engineering services, in addition to
developing and manufacturing aircraft cargo systems, rocket
vehicles and control systems, and precision components. For more
information go to www.pemcoaviationgroup.com. This press release
contains forward-looking statements made in reliance on the safe
harbor provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements may be identified by their use of words,
such as "believe," "expect," "intend" and other words and terms of
similar meaning, in connection with any discussion of the Company's
prospects, financial statements, business, financial condition,
revenues, results of operations or liquidity. Factors that could
affect the Company's forward-looking statements include, among
other things: changes in global or domestic economic conditions;
the loss of one or more of the Company's major customers; the
Company's ability to obtain additional contracts and perform under
existing contracts; the outcome of pending and future litigation
and the costs of defending such litigation; financial difficulties
experienced by the Company's customers; potential environmental and
other liabilities; the inability of the Company to obtain
additional financing; material weaknesses in the Company's internal
control over financial reporting; regulatory changes that adversely
affect the Company's business; loss of key personnel; and other
risks detailed from time to time in the Company's SEC reports,
including its Annual Report on Form 10-K for the fiscal year ended
December 31, 2005. The Company cautions readers not to place undue
reliance on any forward-looking statements, which speak only as of
the date on which they are made. The Company does not undertake any
obligation to update or revise any forward-looking statements and
is not responsible for changes made to this release by wire
services or Internet services.
Pemco Aviation Grp. (MM) (NASDAQ:PAGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pemco Aviation Grp. (MM) (NASDAQ:PAGI)
Historical Stock Chart
From Jul 2023 to Jul 2024