TriMas Announces New Accounts Receivable Facility
30 December 2009 - 8:00AM
PR Newswire (US)
BLOOMFIELD HILLS, Mich., Dec. 29 /PRNewswire-FirstCall/ -- TriMas
Corporation (NASDAQ:TRS) today announced that it entered into a new
accounts receivable facility with Wachovia Bank, National
Association. The new facility, which has a three-year term,
provides committed funding of up to $75 million. The new accounts
receivable facility provides a source of liquidity for the Company
at a cost of funds equal to 3 month LIBOR (currently approximately
0.25%) plus a spread ranging from 2.75% to 3.50% (currently 3.25%)
on amounts drawn under the facility. This facility replaces the
Company's existing $55 million 364-day accounts receivables
securitization facility. Mark Zeffiro, TriMas Chief Financial
Officer, commented, "This new agreement reflects our continued
efforts to ensure that TriMas has adequate liquidity, and together
with the Company's recently amended bank credit facility and senior
secured notes offering, will improve our financial flexibility. In
addition to increasing the level of committed funding from $55
million to $75 million, we will benefit from improved pricing
(currently 125 basis points lower than the existing facility) and
the reduction of refinancing risk resulting from a three-year
commitment. The recent actions taken to improve our capital
structure will allow us to support our planned productivity and
growth initiatives, and accelerate the positive changes taking
place within our organization." 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/
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