Dayton Superior Amends Credit Agreement
16 Marzo 2009 - 6:17AM
Business Wire
Dayton Superior Corporation (NASDAQ: DSUP), the leading North
American provider of specialized products for the nonresidential
concrete construction market, today announced that it has entered
into a first amendment to the revolving credit agreement with the
lender under its $150.0 million revolving credit facility. The
company also announced that it has entered into a second amendment
to the term loan credit agreement with the lenders under its $100.0
million term loan credit facility. Pursuant to the amendments, the
scheduled maturities under the senior credit facilities have been
extended until March 23, 2009. During this initial extension
period, the company expects to continue negotiations with its
senior lenders on the terms of a more comprehensive amendment or
forbearance arrangement.
The interest rates under its senior credit facilities will be
increased as follows: (i) under the revolving credit facility, the
new interest rate will be, at the company�s option, ABR plus 5.50%
or LIBOR plus 6.50% (with up to 4.00% of the total interest rate
paid-in-kind at the company�s option), plus an additional 1.50% on
special overadvances, and (ii) under the term loan credit facility,
the new interest rate will be, at the company�s option, ABR plus
11.50% or LIBOR plus 12.50% (with up to 8.00% of the total interest
rate paid-in-kind at the company�s option).
Copies of the credit agreement amendments will be filed as
exhibits to the company's Current Report on Form 8-K to be filed
with the Securities and Exchange Commission later today.
The company is continuing to evaluate possible strategic
alternatives to enhance stockholder value, including the possible
sale of the company or a controlling interest in the company, and
as previously announced, Harris Williams & Co. has been
retained to assist the company in this evaluation process. Dayton
Superior has also agreed with Morgan Stanley & Co. Incorporated
to end its previously announced relationship with Morgan Stanley
and the company has retained Moelis & Company LLC to advise on
options to refinance or otherwise restructure the company�s
outstanding indebtedness. The credit agreement amendments will
provide the company with additional time to evaluate its
alternatives.
Dayton Superior can provide no assurance that the process to
explore strategic alternatives will result in a transaction or that
the process to restructure the company�s indebtedness will be
successful. As previously announced, the company does not intend to
disclose developments regarding these initiatives unless and until
a definitive agreement is entered into or the Board of Directors
determines to terminate one or both processes. There can be no
assurances that the company will be able to successfully negotiate
a more comprehensive amendment or forbearance agreement or that
waivers or additional extensions can be obtained from its senior
lenders on acceptable terms in the future. There can be no
assurance that any alternative sources of capital and/or
alternative transactions will be available to the company on
acceptable terms or at all in the current challenging economic
environment. The company may be required to enter into a
transaction that substantially dilutes or eliminates the value of
its outstanding common stock. If the company is unable to find
suitable strategic alternatives or restructure its outstanding
indebtedness on a consensual basis, the company may be required to
seek protection under the federal bankruptcy laws.
ABOUT DAYTON SUPERIOR
CORPORATION
Dayton Superior is the leading North American provider of
specialized products consumed in nonresidential, concrete
construction, and we are the largest concrete forming and shoring
rental company serving the domestic, nonresidential construction
market. Our products can be found on construction sites nationwide
and are used in nonresidential construction projects, including:
infrastructure projects, such as highways, bridges, airports, power
plants and water management projects; institutional projects, such
as schools, stadiums, hospitals and government buildings; and
commercial projects, such as retail stores, offices and
recreational, distribution and manufacturing facilities.
Note: Certain statements made herein concerning
anticipated future performance are forward?looking statements.
These forward?looking statements are based on estimates,
projections, beliefs and assumptions of management and are not
guarantees of future performance. Actual future performance,
outcomes and results may differ materially from those expressed in
forward?looking statements as a result of a number of important
factors. Representative examples of these factors include (without
limitation):
- Depressed or fluctuating market
conditions for the company�s products and services;
- operating restrictions imposed
by the company�s existing debt;
- increased raw material costs and
operating expenses;
- the ability to increase
manufacturing efficiency, leverage purchasing power and broaden the
company�s distribution network;
- the competitive nature of the
nonresidential construction industry in general, as well as
specific market areas.
This list of factors is not intended to be exhaustive, and
additional information concerning relevant risk factors can be
found in Dayton Superior�s Annual Report on Form 10?K, Quarterly
Reports on Form 10?Q, and Current Reports on Form 8?K filed with
the Securities and Exchange Commission.
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