Home / Knowledge / News / Textiles / Xerium refinances existing term loans
Xerium refinances existing term loans
18
May '13
Xerium Technologies, Inc. a leading global provider of industrial consumable products and services, announced that it has refinanced its existing term loan and revolving credit facility with the proceeds of a new term loan arranged by Jefferies and Credit Suisse.

Xerium remains focused on executing its global restructuring initiatives and the terms of the new credit facilities provide management with the flexibility to pursue these initiatives as well as pursue new growth opportunities.

Activities that can now be accelerated due to this successful refinancing include:
- Rightsizing SG&A headcount in Europe and North America
- Implementing low cost production sites in Mexico and China
- Closing high-cost production sites in Europe and the Americas and redeploying existing equipment into lower cost locations
- Expanding Xerium’s new product development agenda to enter new market segments more quickly
- Hiring select industry experts in new, targeted market segments
- Acquiring next generation production equipment to both lower operating costs and increase product quality
- Increased flexibility to pursue an acquisition agenda to advance revenue repositioning activities

The refinancing transaction includes the following:
- A new $200 million “covenant lite” term loan credit facility replacing the existing multi-currency term loan
- A new $40 million US and Canadian asset-based revolving line of credit replacing the existing $30 million multi-currency revolving line of credit

Key terms of the new financing include the following:
- Increased borrowing capacity and approximately 400 basis point decrease in interest rates under the new asset-based revolving line of credit
- A 25 basis point increase in interest rates over the life of the term loan as compared to the prior term loan
- Elimination of quarterly financial maintenance ratio tests
- Increased capacity for capital expenditures, restructuring and acquisitions as compared to the prior term loan

Harold Bevis, Xerium's President and Chief Executive Officer, stated, "We are thankful to our lender group for supporting Xerium’s ongoing operational improvement initiatives. The new capital structure allows us to implement what we believe are game-changing improvements to our business. We are now poised to accelerate some of our planned activities.”

Xerium Technologies


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search