Xerium Technologies Inc, a leading global manufacturer of clothing and roll covers used primarily in the paper production process announced that, in steps designed to facilitate future growth, it has secured an amendment to its existing senior credit facility, amended its agreement with certain shareholders with respect to the Company's dividend reinvestment plan, changed its dividend policy and reaffirmed elements of its investment plan. The Company's Board of Directors also declared a cash dividend under the new dividend policy.
Thomas Gutierrez, Xerium's Chief Executive Officer, said, “These steps together provide improved financial flexibility to the Company that we believe will enable us to capitalize more aggressively on the long-term growth opportunities while accelerating reduction of our debt and improving our overall capital structure."
"Given the additional flexibility provided in part by the reduction in dividend, we expect to pursue our previously-announced plans to build a clothing manufacturing operation in Vietnam, fund additional investments in our roll cover business, expand our presence in South America and implement further actions aimed at reducing our overall cost structure.”
He added, ”We are also exploring expansion opportunities in Eastern Europe consistent with our efforts to continue to improve our competitive position in the marketplace and better serve the needs of our customers. We have identified a significant array of investment opportunities that we believe would improve Xerium's growth profile and profitability over time. As such, we expect to continue to review our capital structure and strategic alternatives to insure that we are taking the best advantage of these opportunities.”
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