Falcon Products Completes $135 Million Refinancing
06 Octubre 2004 - 6:41PM
PR Newswire (US)
Falcon Products Completes $135 Million Refinancing ST. LOUIS, Oct.
6 /PRNewswire-FirstCall/ -- Falcon Products, Inc. (NYSE:FCP), a
leading manufacturer of commercial furniture, today announced that
it has completed a refinancing of the Company's existing credit
facility. Detailed terms of the approximate $135 million package
will be filed with the Securities and Exchange Commission. Proceeds
will refinance the Company's existing revolver and term loans,
together with accrued interest, prepayment penalties, and other
fees and expenses of the transaction. Levine Leichtman Capital
Partners, a Los Angeles-based private equity firm, together with
DDJ Capital Management, a Wellesley, MA-based private investment
management company, led a group of banks and other financial
institutions in the transaction, which was facilitated by the Los
Angeles-based investment bank, Imperial Capital, LLC. Arthur E.
Levine, founding general partner of Levine Leichtman Capital
Partners remarked, "We are pleased to have closed the investment in
Falcon within the short timeframe requested by the Company. Falcon
is now well positioned to achieve its growth plans and we look
forward to partnering with Frank Jacobs and his team to build long
term value." Franklin A. Jacobs, Chairman and Chief Executive
Officer of Falcon Products, stated, "This transaction is the result
of months of careful evaluation and review of a number of
opportunities and we are excited about both the terms of our
arrangement as well as the partnership we now have with Levine
Leichtman Capital Partners. This new financing will provide
significant new liquidity needed to support our current business
and help us take advantage of the rebounding economy." Jacobs
continued, "Over the last year, we have made significant progress
towards strengthening and improving the Company's long-term
performance, despite difficult economic conditions. Specifically,
we continue to pursue a consolidation strategy for our
manufacturing plants. We believe this strategy will continue to
drive cost savings and industry-leading reliability in the future.
This plant rationalization will leave us with two domestic plants
with approximately 1.5 million of combined manufacturing square
feet and additional worldwide manufacturing capabilities in the
Czech Republic, Denmark, Mexico and China." Refinancing Highlights
Key elements of the credit facility include: - a $25 million
Revolving Credit Facility, with a three-year term and interest at
LIBOR plus 275 basis points; - a Term Loan A of $70 million, with a
three-year term and interest at LIBOR plus 900 basis points; and -
a Term Loan B of $45.7 million issued at a discount ($40 million).
Interest on Term Loan B is 15%, including 14% cash prepaid at
closing from the proceeds of the financing, and 1% PIK in the first
year, and 7.5% cash and 7.5% PIK in each of years two and three.
The Company will also issue 500,000 shares of the Company's common
stock to the Term Loan B lenders. Minimum EBITDA covenants are set
as follows: no less than $12 million of EBITDA for the three
quarters ending July 30, 2005; and no less than $25 million of
EBITDA for the fiscal year ending October 29, 2005. Outlook Falcon
also issued guidance with regard to its revenues and EBITDA
adjusted for one time, non-recurring expenses for the fourth
quarter of 2004 and for fiscal 2005. For the fourth quarter ending
October 30, 2004, the Company believes that its total sales will be
approximately $63.1 million. Adjusted EBITDA for the quarter is
estimated at $5.6 million. For fiscal 2005, the Company believes
that its total sales will be approximately $263 million and
adjusted EBITDA will be approximately $32.4 million. Though it is
the Company's policy not to provide guidance with respect to its
projected revenues and earnings, circumstances relating to the
refinancing required that such guidance be issued at this time.
About Levine Leichtman Capital Partners Levine Leichtman Capital
Partners is a Los Angeles, California private equity firm that
manages in excess of $1 billion in institutional capital. Founded
in 1984, the investment firm makes structured equity investments in
industry leading middle market companies owned and managed by
entrepreneurs. The firm enhances shareholder value by providing
significant post investment financial assistance to its portfolio
companies. Successful investments by Levine Leichtman Capital
Partners include Media Arts Group Inc., Jon Douglas Real Estate
Services Group, Inc., Consumer Portfolio Services, Inc., the
Quizno's Corporation and CiCi's Pizza, Inc. About DDJ Capital
Management, LLC DDJ Capital Management, LLC is a boutique
investment manager specializing in private equity and debt
financings, as well as high yield and special situations investing.
Founded in 1996, the Wellesley, Massachusetts based investment firm
currently manages more than $2.5 billion on behalf of 65
institutional clients. About Falcon Products Falcon Products, Inc.
is the leader in the commercial furniture markets it serves, with
well-known brands, the largest manufacturing base and the largest
sales force. Falcon and its subsidiaries design, manufacture and
market products for the hospitality and lodging, food service,
office, healthcare and education segments of the commercial
furniture market. Falcon, headquartered in St. Louis, Missouri,
currently operates 8 manufacturing facilities throughout the world
and has approximately 2,100 employees. Safe harbor statement under
the Private Securities Litigation Reform Act of 1995: Statements
contained in this news release which are not historical facts are
forward-looking statements, which involve risks and uncertainties
which could impact future financial performance. Factors which
could cause future performance to differ from those anticipated by
these forward-looking statements include, but are not limited to,
the ability of the Company to service its debt obligations and
satisfy the covenants in its loan obligations, the loss of key
customers or suppliers within specific industries, the availability
or cost of raw materials, increased competitive pricing pressures
reflecting industry conditions, the general demand for products,
general economic conditions, economic conditions in the markets
served by the Company, and other factors. Additional cautionary
statements regarding other risk factors that could have an effect
on future performance of the Company are described in Falcon's
periodic filings with the Securities and Exchange Commission.
Although Falcon believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions,
Falcon can give no assurance that its expectations will be
attained. Any forward- looking statements represent the best
judgment of Falcon as of the date of this release. Falcon disclaims
any obligation to update any forward-looking statements. FOR
FURTHER INFORMATION AT THE COMPANY: Franklin A. Jacobs 9387 Dielman
Industrial Drive St. Louis, MO 63132 (314) 991-9200 DATASOURCE:
Falcon Products, Inc. CONTACT: Franklin A. Jacobs of Falcon
Products, Inc., +1-314-991-9200
Copyright
Falcon Prod (NYSE:FCP)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Falcon Prod (NYSE:FCP)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024