Actuant Extends and Expands Senior Credit Facility
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE:ATU) announced today that it has amended and extended its Senior Credit Facility (the "Credit Facility"). The amended Credit Facility provides for $110 million of additional borrowing capacity, to a total of $515 million, has a three year term and includes a $400 million revolver and a $115 million term loan.
Andrew G. Lampereur, Actuant Chief Financial Officer, commented, "We are very pleased to have completed this transaction. Given the difficult credit market and challenging economic conditions, we believe that Actuant's ability to extend and expand its credit agreement is a testament to our strong relationships with our bank partners as well as their confidence in our business. Between cash on hand and availability under the facility, we have existing liquidity in excess of $200 million. This, together with Actuant's strong free cash flow and the Credit Facility's $300 million expansion feature, will provide the capital necessary to continue to fund our growth strategy."
Borrowings under the Credit Facility are subject to a pricing grid, with initial borrowings priced at LIBOR plus 250 basis points. The facility was arranged by J.P. Morgan Securities Inc, Banc of America Securities LLC and Wells Fargo Bank, N.A.
About Actuant
Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to approximately $1.7 billion. The Company employs a workforce of more than 7,500 worldwide. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, visit the Company's website at www.actuant.com.
Safe Harbor
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors.
Source: Actuant Corporation
Released November 10, 2008