Centerplate Obtains Amendment to Senior Credit Facility and Changes Monthly Distributions
19 Mayo 2008 - 5:28PM
PR Newswire (US)
STAMFORD, Conn., May 19 /PRNewswire-FirstCall/ -- Centerplate, Inc.
(Amex: CVP; TSX: CVP.un), today announced that it has obtained an
amendment to its senior credit facility. This amendment -- which
among other things adjusts several ratio requirements -- increases
the company's financial flexibility and enhances its ability to
pursue attractive growth opportunities and related capital
investments in 2008. The company also announced that in connection
with this amendment, its Board of Directors has determined that it
is prudent to eliminate the monthly dividend payments. Accordingly,
monthly payments to IDS unit holders will consist solely of
interest in the amount of $0.064 per IDS beginning in June 2008.
The company expects to continue to pay the monthly interest on its
subordinated notes, although this payment could be deferred at any
time should the company not meet the ratios specified in the credit
agreement. As previously announced, Centerplate has initiated a
process to evaluate a range of capital structure and other
alternatives and has engaged UBS Securities as the company's
financial advisor to assist in this process. Centerplate expects to
complete the evaluation process within the five-month timeframe
provided by the amendment. Centerplate today filed its Form 10-Q
for the quarter ended April 1, 2008, and IDS unit holders are urged
to review the Form 10-Q for additional information on the company's
credit agreement and the terms of the amendment. About Centerplate
Centerplate, Inc., with its principal executive office in Stamford,
CT, crafts and delivers extraordinary entertainment experiences in
more than 130 prominent sports, entertainment and convention center
venues across North America. Visit the company online at
http://www.centerplate.com/ . Forward-Looking Statements This news
release includes forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. These statements may involve risks and uncertainties
that could cause actual results to differ materially from those
described in such statements. Although Centerplate believes that
the expectations reflected in these forward-looking statements are
reasonable, the company can give no assurance that these
expectations will prove to have been correct or that they will
occur. Important factors beyond Centerplate's control, including
general economic conditions, the outcome of the company's
exploration of alternatives, consumer spending levels, changing
trends in our business and competitive environment, the company's
borrowing capacity and the provisions of the credit agreement and
the indenture, adverse weather conditions and other factors, as
well as the risks identified in our most recent annual report on
Form 10-K and other filings with the Securities and Exchange
Commission could cause actual results to differ materially from
Centerplate's expectations. Centerplate undertakes no obligation to
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise. Contact
Information Gael Doar Director of Communications 203-975-5941
DATASOURCE: Centerplate, Inc. CONTACT: Gael Doar, Director of
Communications of Centerplate, Inc., +1-203-975-5941, Web site:
http://www.centerplate.com/
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