Danka Announces Refinancing Agreement Totaling $145 million with GE Corporate Lending.ST. PETERSBURG, Fla. -- Danka Business Systems PLC (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DANKY) today announced that it has entered into an agreement with GE Corporate Lending for a new senior secured credit facility totaling $145 million that would be used, together with the proceeds of the Company's previously completed sale of its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations, to significantly reduce and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the Company's existing indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . Upon completion of this financing, the Company expects to reduce its overall indebtedness to approximately $120 million, down from $254 million. It will also reduce annual interest expense to approximately $13 million from the current $29 million. "Today's agreement with GE Corporate Lending represents another significant milestone in the reshaping of Danka," said A.D. Frazier, Chairman and Chief Executive Officer. "This credit facility, along with the other important financial and operational steps we have taken in the past year, will provide Danka with the appropriate long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. flexibility from which to grow our business. It also reaffirms the Company's commitments to our valued vendors and existing customers, and significantly enhances the ability of our talented team of employees to compete for and win new customers, as well as deliver even greater value." The new credit facility includes a $40 million Senior Secured 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, a $60 million Senior Secured Term Loan and a $45 million Second Lien Loan A Second Lien Loan is a simple loan with a subordinated security (finance) structure or no security at all (unsecured debt), meaning that the borrower grants another provider of a finance instrument (eg. . Completion of the financing is subject to a number of customary closing conditions. The Company expects the transaction to close by June 22, 2007. Representing Danka in the transaction was the investment banking firm Houlihan Lokey and the law firm Skadden, Arps, Slate, Meagher & Flom. About Danka Danka delivers value to clients by using its expert technical and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to implement effective document information solutions. As one of the leading independent providers of enterprise imaging systems and services, the company enables choice, convenience, and continuity. Danka's vision is to empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems customers to benefit fully from the convergence of image and document technologies in a connected environment. This approach will strengthen the company's client relationships and expand its strategic value. For more information, visit Danka's web site at www.danka.com. About GE Corporate Lending With $14 billion in assets, GE Commercial Finance Corporate Lending is one of North America's largest providers of asset-based, cash flow, structured finance and other capital solutions for mid-size and large companies. From over 30 offices throughout the U.S. and Canada, Corporate Lending specializes in serving the unique needs of borrowers seeking $20 million to $2 billion and more for working capital, growth, acquisitions, project finance and turnarounds. Visit www.gelending.com/clnews for more information. Certain statements contained in this press release, including statements related to Danka's future business and financial performance, are forward-looking. Such statements reflect the current views of Danka with respect to future events and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those reflected in the 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. . Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management's analysis only as of the date they are made. Danka is a registered trademark and Danka @ the Desktop is a trademark of Danka Business Systems PLC. All other trademarks are the property of their respective owners. |
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