TriMas Corporation Finalizes Previously Announced Amendment and Extension of Credit Agreement
17 December 2009 - 12:51PM
PR Newswire (US)
BLOOMFIELD HILLS, Mich., Dec. 16 /PRNewswire-FirstCall/ -- TriMas
Corporation (NASDAQ:TRS) today announced that the Company has
executed an amendment and restatement of its Credit Agreement with
certain of its lenders to extend the maturity of $220.1 million of
its $252.2 million in term loans from August 2, 2013 to December
15, 2015. The Credit Agreement has also been amended for certain
items including modified financial covenant levels to improve
financial flexibility and the ability to refinance existing
subordinated notes with senior secured notes. Over 88% of the
Company's existing lenders agreed to the amendment. TriMas'
borrowing costs on the extended term loans will be at LIBOR plus
4.00%, with a "LIBOR floor" of 2.00%. The maturity date and
interest margins with respect to those term loans held by lenders
that did not consent to extend the maturity of their term loans
will remain unchanged. In addition, pursuant to the amendment,
certain revolving credit lenders have agreed to extend the maturity
of $70.0 million (on an as reduced basis) out of $90.0 million in
revolving credit commitments from August 2, 2011 to December 15,
2013. After giving effect to reductions in revolving commitments of
certain extending revolving lenders, we have $78 million of total
revolving credit commitments. The Company's borrowing costs with
respect to revolving credit loans made pursuant to such extended
revolving credit commitments will be at LIBOR plus 4.00%, without
an applicable "LIBOR floor." The commitment fee payable with
respect to the undrawn extended revolving credit commitments will
be increased to 0.75%. The maturity date and interest margins with
respect to those revolving credit commitments held by lenders that
did not consent to extend will remain unchanged. David Wathen,
TriMas President and Chief Executive Officer, commented on the
credit agreement extension, "We view this refinancing as very
positive for TriMas, allowing us to continue on our path of
continuous improvement. We have demonstrated improved operating
performance via cost reduction activities and increased cash
generation, allowing us to reduce debt by over $100 million through
the first three quarters of 2009. We will continue this focus going
forward and are pleased that we received such support from our
existing lenders." Cautionary Notice Regarding Forward-looking
Statements Any "forward-looking" statements contained herein,
including those relating to market conditions or the Company's
financial condition and results, expense reductions, liquidity
expectations, business goals and sales growth, involve risks and
uncertainties, including, but not limited to, risks and
uncertainties with respect to general economic and currency
conditions, various conditions specific to the Company's business
and industry, the Company's substantial leverage, liabilities
imposed by the Company's debt instruments, market demand,
competitive factors, the Company's ability to maintain compliance
with the listing requirements of NASDAQ, supply constraints,
material and energy costs, technology factors, litigation,
government and regulatory actions, the Company's accounting
policies, future trends, and other risks which are detailed in the
Company's Annual Report on Form 10-K for the fiscal year ending
December 31, 2008, and in the Company's Quarterly Reports on Form
10-Q. These risks and uncertainties may cause actual results to
differ materially from those indicated by the forward-looking
statements. All forward-looking statements made herein are based on
information currently available, and the Company assumes no
obligation to update any forward-looking statements. About TriMas
Headquartered in Bloomfield Hills, Michigan, TriMas Corporation
(NASDAQ:TRS) provides engineered and applied products for growing
markets worldwide. TriMas Corporation is organized into five
strategic business segments: Packaging, Energy, Aerospace &
Defense, Engineered Components and Cequent. TriMas Corporation has
approximately 3,800 employees at 70 different facilities in 11
countries. We can be found on the internet at
http://www.trimascorp.com/. CONTACT: Sherry Lauderback Vice
President, Investor Relations & Communications (248) 631-5506
DATASOURCE: TriMas Corporation CONTACT: Sherry Lauderback, Vice
President, Investor Relations & Communications,
+1-248-631-5506, Web Site: http://www.trimascorp.com/
Copyright