Actuant Announces Replacement of Senior Credit Facility, Resulting Non-Cash Charge.Business Editors MILWAUKEE--(BUSINESS WIRE)--Feb. 19, 2004 Actuant Corporation (NYSE NYSE See: New York Stock Exchange :ATU (ADSL Transceiver Unit) A device that provides ADSL modulation of the telephone line. The device at the telco side is the ATU-C (Central), which is a line card plugged into the DSLAM. ) announced that it has entered into a $250 million five-year senior 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 "Revolver"). The Revolver replaces the current Senior Secured Credit Facility which included an outstanding $30 million term loan and an undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely $100 million revolving credit facility. The Revolver is not secured by the Company's assets, and provides for guaranties and stock pledges by certain of the Company's significant subsidiaries. Borrowings under the Revolver are subject to a pricing grid, with initial borrowings priced at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 150 basis points, compared to LIBOR plus 200 basis points under the former facility. Andrew G. Lampereur, Actuant Chief Financial Officer, commented, "Securing a new senior credit facility was one of the last steps in replacing the Company's original spin-off financing. This past Fall, we successfully replaced a portion of our 13% Senior Subordinated Notes with proceeds from the issuance of 2% Senior Subordinated Convertible Debentures. The improved terms and structure of the new senior revolver result from the Company's significant deleveraging since the spin-off, and the increased capacity provides strong liquidity as we move forward in executing our growth strategies to enhance shareholder value." The replacement of the senior credit facility will result in a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. in the second quarter of approximately $2.3 million, $1.5 million net of tax, or approximately $0.06 per diluted share, representing the write-off of the remaining capitalized debt issuance costs associated with the former facility. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain of the above comments represent forward-looking statements made pursuant to the provisions of 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. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact on the economy of terrorist attacks and other geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. activity continued market acceptance of the Company's new product introductions, the successful integration of business unit acquisitions and related restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with operations in over 20 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools. Products are offered under such established brand names as Dresco, Enerpac, Gardner Bender, Kopp, Kwikee, Milwaukee Cylinder, Nielsen Sessions, Power-Packer, and Power Gear. For further information on Actuant and its business units, visit the Company's website at www.actuant.com. |
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