AT Plastics Announces Additional Subordinated Debt Financing.Business Editors BRAMPTON, Ontario--(BUSINESS WIRE)--June 13, 2003 AT Plastics (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ATP ATP: see adenosine triphosphate. ATP in full adenosine triphosphate Organic compound, substrate in many enzyme-catalyzed reactions (see catalysis) in the cells of animals, plants, and microorganisms. ) announced today that it had negotiated an increase of US $5 million to its subordinated term credit facility. Proceeds will be used to reduce outstanding indebtedness on the Company's current revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The new term facility was arranged to improve liquidity and to reduce certain costs associated with the amending of the Company's financial covenants on March 11, 2003. As a result of this financing, the interest rate on its senior term facility will revert to the previous rate, resulting in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of approximately $0.9 million at current exchange rates. In addition, an amendment fee of $1 million at current exchange rates that was payable at the maturity of the facility and accrued in the first quarter of 2003 will be reversed back into income in the current quarter. The increased and extended US $5 million subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". financing has a five-year term paying cash interest of 14%, with pay-in-kind interest of 5% at maturity. No principal repayments are made until maturity. In addition, approximately 917,000 warrants were issued exercisable over five years at strike prices ranging from $1.57 per share to $0.72 per share. "We are very pleased to have negotiated this additional term facility which provides enhanced liquidity for the Company," commented Gary Connaughty, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "By using the proceeds to pay down our current revolving credit facility, we have further strengthened our ability to build the business and meet the challenges of the current industry environment." Forward-Looking Statements All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements regarding future events or future financial performance represent AT Plastics' expectations, plans, intentions, and beliefs and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors include but are not restricted to raw material costs, competitive pricing, currency fluctuations, and economic cycles affecting demand and prices, and other risks identified in Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial in AT Plastics' annual report. AT Plastics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. AT Plastics Inc. develops and manufactures specialty plastic resins and film products for a number of niche markets in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and around the world. Through unique process engineering, AT Plastics has developed proprietary and patented processes designed to meet evolving customer requirements for high quality, specialized products and services. Operating from a modern, state-of-the-art engineering and manufacturing facility in Edmonton Alberta, the Company produces specialty plastic resins and compounds for applications such as thermal laminating, hot-melt adhesives, automotive products, packaging and medical and pharmaceutical applications, and film products for agricultural and horticultural markets. AT Plastics' common shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol ATP. For more information, please visit our website at www.atplastics.com. |
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