Company Lowers Interest Rates, Extends Maturities and Increases
Financial Flexibility
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--
TriMas Corporation (NASDAQ: TRS) — a diversified manufacturer of
engineered and applied products — today announced the closing of its
amended and restated credit facilities. The amended and restated credit
facilities are comprised of a $250 million Senior Secured Revolving
Credit facility, a $200 million Senior Secured Term Loan A facility and
a $200 million Senior Secured Term Loan B facility.
Under the amended and restated credit agreement, the Term Loan A and
Revolving Loans initially bear interest at LIBOR plus 2.00% (subject to
a step-up to LIBOR plus 2.50% or step-down to LIBOR plus 1.50% based on
leverage ratio). In addition, the maturity on the Term Loan A and the
Revolving Facility have a five year term ending on October 11, 2017. The
Term Loan B bears interest at LIBOR plus 2.75%, with a "LIBOR floor" of
1.00% per annum. The maturity on the Term Loan B has been extended to
October 11, 2019. The refinancing process was led by J.P. Morgan.
"Due to the current attractive financial markets and the Company's
strong financial performance, we had the opportunity to refinance our
credit facilities with terms that were not only better than our existing
facilities, but also better than expected at the launch of refinance,"
said Mark Zeffiro, TriMas' chief financial officer. "As a result of the
refinance and the reduction in borrowing rates, on a pro forma basis, we
estimate annual cash interest savings of approximately $14 million. In
addition, we expect TriMas to benefit from the extended credit facility
maturities and enhanced liquidity and capital structure flexibility
needed to best position the Company for future growth. We are pleased we
received such support from both existing and new lenders. As with all
aspects of our business, we are focused on continuous improvement —
working to improve our profitability and drive shareholder value."
Proceeds from borrowings under the amended and restated facilities were
used to refinance the Company's existing $125 million Senior Secured
Revolving Credit Facility and $218 million Senior Secured Term Loan B
and to pay fees and expenses related thereto.
In addition, pursuant to the Company's previously announced tender offer
and consent solicitation, $176.5 million aggregate principal amount,
representing 88.3% of the aggregate principal amount outstanding, of the
Company's 9.75% Senior Secured Notes due 2017 had been tendered along
with the related consents. TriMas has accepted for payment, and has paid
for with borrowings under the amended and restated facilities, all such
Notes validly tendered. The tender offer will expire at 12:00 midnight,
New York City time, on October 17, 2012, unless extended (such date and
time, the "Expiration Date"), and the Company will accept for payment
and pay for all Notes validly tendered prior to the Expiration Date.
TriMas intends to redeem all of the outstanding Notes not tendered in
the tender offer. The redemption date of the Notes is scheduled to occur
on November 17, 2012. As a result, no Notes will remain outstanding
following the redemption.
Cautionary Notice Regarding Forward-looking
Statements
Any "forward-looking" statements contained herein, including those
relating to market conditions or the Company's financial condition and
results, expense reductions, liquidity expectations, business goals and
sales growth, involve risks and uncertainties, including, but not
limited to, risks and uncertainties with respect to general economic and
currency conditions, various conditions specific to the Company's
business and industry, the Company's substantial leverage, liabilities
imposed by the Company's debt instruments, market demand, competitive
factors, supply constraints, material and energy costs, technology
factors, litigation, government and regulatory actions, the Company's
accounting policies, future trends, and other risks which are detailed
in the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2011, and in the Company's Quarterly Reports on Form 10-Q.
These risks and uncertainties may cause actual results to differ
materially from those indicated by the forward-looking statements. All
forward-looking statements made herein are based on information
currently available, and the Company assumes no obligation to update any
forward-looking statements.
About TriMas
Headquartered in Bloomfield Hills, Michigan, TriMas Corporation (NASDAQ:
TRS) provides engineered and applied products for growing markets
worldwide. TriMas is organized into six reportable segments:
Packaging, Energy, Aerospace & Defense, Engineered Components, Cequent
Asia Pacific and Cequent North America. TriMas has approximately 4,500
employees at more than 60 different facilities in 17 countries. For more
information, visit www.trimascorp.com.
TriMas Corporation
Sherry Lauderback, (248) 631-5506
Vice
President, Investor Relations
& Communications
sherrylauderback@trimascorp.com
Source: TriMas Corporation
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