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Xerium amends credit agreement
31 May '08
2 min read
Xerium Technologies Inc, a leading global manufacturer of clothing and roll covers used primarily in the paper production process, today announced that it has secured a fifth amendment to its existing senior credit facility. Citigroup Global Markets Inc acted as the sole lead arranger, with more than 60 lenders participating.
The term loan portions of the amended and restated $660 million Credit Facility mature on May 19, 2012, and the revolving credit portion matures on November 19, 2011. The amended facility requires the Company to comply with revised operating controls and financial covenants. The revised covenants place the Company in compliance with the financial requirements of the credit facility for the period ending and as of March 31, 2008.
"We appreciate the active engagement and support of our many lenders, who concur with the recently announced new strategic direction of the company. Through this amendment process, the lenders recognized that Xerium's historical covenant compliance issues were the consequence of applying the Company's very strong cash flows to purposes other than debt repayment," said Stephen Light, President and Chief Executive Officer.
"Substantially reducing our debt through the term of the new agreement is at the very heart of our strategic plan to improve the company, enhance operational efficiencies, and maximize value on behalf of our numerous stakeholders. We believe this new agreement provides us access to the funds we need to execute our plan. I'm very pleased we've reached this agreement with our lenders in a timely manner and thank them, CitiBank and the Alix Partners for their perseverance throughout this complex process."
The term loan portions of the amended and restated $660 million Credit Facility mature on May 19, 2012, and the revolving credit portion matures on November 19, 2011. The amended facility requires the Company to comply with revised operating controls and financial covenants. The revised covenants place the Company in compliance with the financial requirements of the credit facility for the period ending and as of March 31, 2008.
"We appreciate the active engagement and support of our many lenders, who concur with the recently announced new strategic direction of the company. Through this amendment process, the lenders recognized that Xerium's historical covenant compliance issues were the consequence of applying the Company's very strong cash flows to purposes other than debt repayment," said Stephen Light, President and Chief Executive Officer.
"Substantially reducing our debt through the term of the new agreement is at the very heart of our strategic plan to improve the company, enhance operational efficiencies, and maximize value on behalf of our numerous stakeholders. We believe this new agreement provides us access to the funds we need to execute our plan. I'm very pleased we've reached this agreement with our lenders in a timely manner and thank them, CitiBank and the Alix Partners for their perseverance throughout this complex process."
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