Fargo Electronics Pays Off Term Loan And Extends $5 Million Revolving Credit Facility With LaSalle Bank, N.A.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Jan. 6, 2003 Fargo Electronics, Inc. (Nasdaq:FRGO) today announced that it has paid off its term loan and has extended its $5 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 with the Minnesota office of LaSalle Bank LaSalle Bank Corporation is the holding company for LaSalle Bank N.A. and LaSalle Bank Midwest N.A. With $116 billion in assets, it is headquartered at 135 South LaSalle Street in Chicago, Illinois. National Association, an operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon of ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) , Inc. (NYSE NYSE See: New York Stock Exchange :ABN). The revolving credit facility has been extended for a three-year period through December 2005. Currently, the company does not have any indebtedness under the facility. Secured by the assets of the company, the facility is subject to the company maintaining certain covenants and carries an interest rate of either prime or LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , plus 1.5%. "In the last two years, Fargo has repaid over $22 million of debt, primarily from cash generated from operations," commented Gary R. Holland, Fargo's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We believe that the extension of our revolving credit facility, together with the continuing funds we expect to generate from operations, will be sufficient to finance our current operations and planned capital expenditure requirements for at least the next twelve months." About Fargo Fargo Electronics, Inc. (Nasdaq:FRGO) is the world's leader in innovative technologies for desktop plastic card personalization systems. Personalized identification cards provide physical, information, and transaction security for a wide variety of applications including Corporations, National IDs, Drivers' Licenses, Universities, Schools, Government Installations, Transportation, Casinos, Healthcare Facilities, E-commerce, Retail Stores, Correctional Institutions, Associations, Sports Events and Recreation Sites. More than 60,000 Fargo systems have been sold in the U.S. and over 80 other countries. For more information, visit Fargo's Web site at http://www.fargo.com. Forward-looking Statements Statements made in this release concerning the company's expectations about future results or events are "forward-looking statements." Such statements are subject to the 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. created by the Private Securities Reform Act of 1995, and are necessarily subject to risks and uncertainties. Actual results may differ materially from those reflected in these forward-looking statements. These risks include: product acceptance and customer demand for Fargo's card personalization systems and proprietary supplies; actions taken and alternative products marketed by Fargo's competitors; supplier relationships, including reliance on sole and single-source suppliers; lack of inventories of component parts or finished goods; our focus on the identification card personalization market; continuing technological changes in our industry; our dependence on a distribution network; domestic and international regulations and standards; our dependence on international sales; material changes in orders placed by end users; the speed of multiple system installations by large end users; challenges in effectively managing growth; our dependence on technologies we do not own; complex design and manufacturing delays; protecting and enforcing intellectual property rights; inadequate protection against infringement claims; adverse economic and business conditions, including conditions resulting from the terrorist attack on the U.S. on September 11, 2001 and the resulting hostilities. For more detail, see the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2001, and Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, 2002, June 30, 2002, and September 30, 2002. |
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