American Residential Announces New $165 Million Credit Facility.HOUSTON--(BUSINESS WIRE)--July 8, 1998--American Residential Services, Inc. (NYSE NYSE See: New York Stock Exchange :ARS) today announced that it closed a new secured credit facility with an expanded syndicate of commercial banks and The Prudential Insurance Company of America to increase its borrowing capacity from $100 million to $165 million. The new facility, still agented by NationsBank, N.A. with BankBoston, N.A. acting as co-agent, includes a $115 million, three-year 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. line provided by the syndicate and a $50 million, five-year term loan provided by Prudential. "We are pleased with the continued confidence our banks have displayed in the Company's future and with the interest of two new banks and Prudential," commented Hank hank n. 1. A coil or loop. 2. Nautical A ring on a stay attached to the head of a jib or staysail. 3. A looped bundle, as of yarn. Nicodemus, Chief Financial Officer. "With this expanded line, we have reinforced our flexibility to pursue our growth strategy and continue developing ARS as the leading premier service provider." American Residential Services is engaged principally in providing comprehensive maintenance, repair, replacement and new equipment installation services for heating, air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. , plumbing, electrical, indoor air quality Indoor Air Quality (IAQ) deals with the content of interior air that could affect health and comfort of building occupants. The IAQ may be compromised by microbial contaminants (mold, bacteria), chemicals (such as carbon monoxide, radon), allergens, or any mass or energy stressor systems and major home appliances, primarily in existing homes, homes under construction and commercial buildings. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning 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. These statements are based on current plans and expectations of ARS and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions and variations in stock prices, competition, and risks of operations and integration of the newly acquired businesses.
CONTACT: American Residential Services, Houston
Jennifer L. Tweeton, 713/599-9015
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