AirBoss of America Corp. Announces Expanded Credit Facilities to US$138 million
By Marketwired News
By Marketwired News
NEWMARKET, ON–(Marketwired – December 10, 2015) – AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”), is pleased to announce that it has successfully amended its senior secured credit facilities to, among other things, increase the availability to approximately US$138 million, extend the maturity of the facilities and increase flexibility under the governing credit agreement to support future growth opportunities. In addition, The Toronto-Dominion Bank (“TD Bank”) and National Bank of Canada (“National Bank”) have joined the syndicate of lenders, with TD Bank also assuming the role of administrative agent under the credit facilities.
As a result of the expansion, the aggregate availability under the Company’s credit facilities is now approximately US$138 million, comprised of an increased US$60 million revolving facility, a term loan of US$75 million (consolidating the two prior outstanding acquisition financing loans), a term loan of C$4.3 million (unchanged from the prior facility) and an accordion feature of up to an additional US$50 million of availability, upon the satisfaction of customary conditions for such features. The maturity dates of the revolving credit facility and the US$ term loan were extended from October 2018 to December 2020, while the maturity date of the C$ term loan remains at October 2018.
AirBoss welcomes TD Bank and National Bank to its syndicate of lenders under the revolving and term loan facilities, joining existing syndicate members Comerica Bank and J.P. Morgan and the C$ term loan lender Integrated Private Debt Fund III LP. Effective today, TD Bank will also assume the role of administrative agent under the Company’s credit facilities. TD Bank also served as sole lead arranger and book runner in connection with the amendment.
Lisa Swartzman, President of AirBoss, commented, “We very much appreciate the continued support from our existing lender group and are pleased to add TD Bank and National Bank to the group. The amended credit facilities provide us with additional flexibility to support the Company’s strategic growth plans.”
Contact Lisa Swartzman, President or Gren Schoch, Chairman and CEO at 905-751-1188.
AirBoss of America Corp. is a group of complementary businesses using compounding technology and engineering expertise to create value for its customers. With a capacity to supply over 250 million pounds of rubber annually, AirBoss Rubber Compounding is one of North America’s largest custom rubber compounding companies. AirBoss Engineered Products is a world leader in the supply of life saving products for the military and essential calandered, extruded and molded products for a broad range of applications. AirBoss Flexible Products is a leading supplier of innovative anti-vibration solutions to the North American automotive market. The Company’s shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com.
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Forward-looking statements are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking statements involve known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation: impact of general economic conditions; its dependence on key customers; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof, changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage caused by it and non-compliance with environmental laws and regulations; potential product liability and warranty claims and equipment malfunction. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking statements.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press releaseand, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly these forward-looking statements except as required by applicable laws. Risks and uncertainties about AirBoss’s business are more fully discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2014 Annual Report to Shareholders under the heading “Risk Factors”.
Chairman and CEO