Dayton Superior Reports Extension of Debt Refinancing Commitment.DAYTON, Ohio -- Dayton Superior Corporation (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 : DSUP DSUP Defense System Upgrade Program DSUP Detective Superintendent ), the leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of specialized products for the non-residential concrete construction market, today announced that it has extended its commitment from GE Commercial Finance for a debt refinancing to February 29, 2008. Dayton Superior expects to complete the refinancing prior to that date. The commitment is for a new $150 million 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 and a new $100 million term loan, for total new financing of $250 million. The refinancing is currently estimated to reduce annual interest expense by $5 million to $6 million, or approximately $0.25 to $0.30 per share. The new "revolver," an Asset Based Lending facility currently expected to be issued at the rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 225 basis points, will replace the Company's existing $130 million revolving credit facility. A portion of the revolving credit facility, as well as the new term loan, which is currently expected to be issued at LIBOR plus 375 basis points, will be used to retire the Company's 103/4% Senior Second Secured Notes due in September 2008 at a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of 102.813% of principal amount plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . Consummation of the new debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay is subject to customary conditions, including an absence of material adverse changes in Dayton Superior's business and a requirement for minimum adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , as defined. The terms of the new debt remain unchanged and are contained in the Exhibits to the Company's Form 10-Q Form 10-Q See 10-Q. for the third quarter of 2007. Dayton Superior expects to explore refinancing alternatives with respect to its 13% Senior Subordinated Notes soon after completion of the refinancing of the 103/4% Senior Second Secured Notes. About Dayton Superior Corporation Dayton Superior is the leading North American provider of specialized products consumed in non-residential, concrete construction, and the largest concrete forming and shoring rental company serving the domestic, non-residential construction market. The Company's products can be found on construction sites nationwide and are used in non-residential construction projects, including: infrastructure projects, such as highways, bridges, airports, power plants and water management projects; institutional projects, such as schools, stadiums, hospitals and government buildings; and commercial projects, such as retail stores, offices and recreational, distribution and manufacturing facilities. Note: Certain statements made herein concerning anticipated future performance are forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation): * depressed or fluctuating market conditions for our products and services; * operating restrictions imposed by our existing debt; * increased raw material costs and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ; * our ability to increase manufacturing efficiency, leverage our purchasing power and broaden our distribution network; * the competitive nature of our industry in general, as well as our specific market areas; * changes in prevailing interest rates and the availability of and terms of financing to fund the anticipated growth of our business; * satisfaction of the conditions for completion of our refinancing. This list of factors is not intended to be exhaustive, and additional information concerning relevant risk factors can be found in Dayton Superior's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and current Reports on Form 8-K filed with the Securities and Exchange Commission. |
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