BPI Packaging Technologies Inc. announces $8 million revolving line of credit.N. DIGHTON, Mass.--(BUSINESS WIRE)--Oct. 28, 1996--BPI Packaging Technologies Inc. ("BPI (Bits Per Inch) The measurement of the number of bits stored in one linear inch of a track (storage channel) on a disk or tape. Bit density on magnetic disks has reached 800,000 bpi (800 Kbpi). See tpi, areal density and magnetic disk. BPI - bits per inch ") (NASDAQ/NMS:BPIE BPIE Base Procured Investment Equipment (common stock)), today announced receipt of a commitment for a new $8 million revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. secured by accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory which will replace its present $4 million bank secured revolving line of credit. Dennis N. Caulfield, chairman and chief executive officer, stated, "BPI has received a commitment from The Foothill Group, one of the nation's largest asset-based lenders and a subsidiary of Norwest Corp., for an $8 million revolving line of credit secured by accounts receivable and inventory. The new line of credit will replace the present $4 million bank revolving line of credit and provide additional availability which will increase balance sheet liquidity." Caulfield concluded, "The Foothill Group's $1 billion asset-based lending Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Also known as "commercial finance" or "asset-based financing". business provides companies with $5 million- $50 million in financing. Importantly, The Foothill Group has the lending capacity to support BPI's anticipated growth in sales over the next several years. We are looking forward to a long and mutually profitable relationship with The Foothill Group and expect to close the new line of credit in early November." BPI Packaging Technologies Inc. is a leading manufacturer of traditional plastic grocery carry-out bags, referred to as t-shirt sacks, proprietary t-shirt bags and plastic film products, and proprietary in-store advertising and promotional products. -0- Certain statements contained in this press release are not based on historical facts, but are "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, that are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in such statements. The company's ability to achieve the results anticipated in any forward-looking statements is subject to certain risks and uncertainties, including, but not limited to, the general economy and product demand. CONTACT: BPI Packaging Technologies Inc., N. Dighton Dennis N. Caulfield, 508/824-8636 or Tower Research Associates, Cleveland Arthur Stupay, 216/861-6950 |
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