Noble International, Ltd. Secures $50 Million in Financing
06 Marzo 2008 - 5:15PM
PR Newswire (US)
TROY, Mich., March 6 /PRNewswire-FirstCall/ -- Noble International,
Ltd. announced ArcelorMittal intends to invest $50 million in the
Company in the form of a convertible subordinated note. The
proceeds from this financing will be used to reduce the Company's
North American senior debt and support its operations. In a
separate transaction, Robert Skandalaris, Noble's Chairman and
Founder, has agreed to sell to ArcelorMittal substantially all of
his shares in the Company. Thomas L. Saeli, Chief Executive Officer
of Noble stated, "ArcelorMittal is the world's largest steel
manufacturer as well as Noble's largest supplier, customer and
shareholder. Its commitment to invest $50 million in Noble will
ensure a strong capital structure for the company as we continue to
expand in the global marketplace. In addition, ArcelorMittal's
proposal represented the most favorable terms and conditions when
compared to the other proposals we received through our extended
financing efforts. ArcelorMittal currently has a significant
investment in the Company through the shares it acquired in
connection with the Company's acquisition of its laser welding
business. As part of that transaction, ArcelorMittal obtained the
right to acquire additional shares in the Company from our
Chairman, which it is now electing to exercise. We believe that the
financing provided by ArcelorMittal and the acquisition by it of
additional shares is advantageous to the Company and should not be
considered a 'bailout' as has been reported by certain media
outlets." Mr. Skandalaris, Noble's Chairman, commenting on the
transactions stated, "I am very excited by ArcelorMittal's
increased involvement with the Company. This represents a
tremendous opportunity for Noble. Over the last ten years this
Company has grown from one plant with $30 million in revenues to a
truly global, strategically-aligned company with revenues over $1
billion and 24 facilities in twelve countries around the world.
Over the next ten years, the Company must focus on increasing and
enhancing its global presence and strengthening its relationship
with its strategic partners and OEMs. Noble's relationship with
ArcelorMittal provides a significant advantage over its competitors
as it strives to achieve these goals. I believe ArcelorMittal's
desire to increase its investment and share ownership demonstrates
its enthusiasm for the future of the Company and its commitment to
Noble's success. If these transactions close, I will step-down as
Chairman, but I leave this Company in capable hands with a future
that I could not have imagined ten years ago." The transactions are
expected to be completed within the next couple of weeks. SAFE
HARBOR STATEMENT Noble International, Ltd. is a leading supplier of
automotive parts, component assemblies and value-added services to
the automotive industry. As an automotive supplier, Noble provides
design, engineering, manufacturing, program management and other
services to the automotive market. Noble delivers integrated
component solutions, technological leadership and product
innovation to original equipment manufacturers (OEMs) and Tier I
automotive parts suppliers thereby helping its customers increase
their productivity while controlling costs. Certain statements made
by Noble International, Ltd. in this presentation and other
periodic oral and written statements, including filings with the
Securities and Exchange Commission, are "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements, as well as
statements which address operating performance, events or
developments that we believe or expect to occur in the future,
including those that discuss strategies, goals, outlook or other
non- historical matters, or which relate to future sales or
earnings expectations, cost savings, awarded sales, volume growth,
earnings or a general belief in our expectations of future
operating results, are forward-looking statements. The
forward-looking statements are made on the basis of management's
assumptions and estimations. As a result, there can be no guarantee
or assurance that these assumptions and expectations will in fact
occur. The forward-looking statements are subject to risks and
uncertainties that may cause actual results to materially differ
from those contained in the statements. Some, but not all of the
risks, include our ability to obtain future sales; our ability to
successfully integrate acquisitions; changes in worldwide economic
and political conditions, including adverse effects from terrorism
or related hostilities including increased costs, reduced
production or other factors; costs related to legal and
administrative matters; our ability to realize cost savings
expected to offset price concessions; inefficiencies related to
production and product launches that are greater than anticipated;
changes in technology and technological risks; increased fuel
costs; work stoppages and strikes at our facilities and that of our
customers; the presence of downturns in customer markets where the
Company's goods and services are sold; financial and business
downturns of our customers or vendors; and other factors,
uncertainties, challenges, and risks detailed in Noble's public
filings with the Securities and Exchange Commission. Noble does not
intend or undertake any obligation to update any forward looking
statements. For more information see http://www.nobleintl.com/.
DATASOURCE: Noble International, Ltd. CONTACT: Scott A. Kehoe,
Treasurer, Noble International, Ltd., +1-248-519-0700 Web site:
http://www.nobleintl.com/
Copyright