Leading packaging industry Polymer Group Inc (PGI)announced it has successfully closed and received proceeds from its new $455 million syndicated credit facility arranged by Citigroup Global Markets Inc.
"This refinancing is expected to have a positive impact on cash flow due to the significantly lower interest rate. Additionally, they view this as an affirmation from the financial markets of the improvements have made in their business and confirmation of sound strategies for future growth," said Polymer Group's Chief Executive Officer, James L. Schaeffer.
The new senior bank facility consists of a $45 million revolving credit facility maturing in 2010 and a $410 million senior secured term loan that matures in 2012. The proceeds were used to fully repay indebtedness outstanding under the company's previous senior credit facility.
The interest rate on the new facility is based on a spread over the London Interbank Offered Rate (LIBOR) of 2.25 Percent - or 1.25 Percent over a defined Alternate Base Rate (ABR) - for both the revolving credit facility and the term loan.
The company's previous senior facility included a $280 million Term Loan B with an interest rate of LIBOR plus 3.25 Percent (or ABR plus 2.25 Percent), a $125 million Term Loan C with an interest rate of LIBOR plus 6.25 Percent (or ABR plus 5.25 Percent) and a $50 million revolving credit facility with an interest rate of LIBOR plus 2.50 Percent (or ABR plus 1.50 Percent). Certain assets of the company secure the credit facility.
Polymer Group Inc, one of the world's leading producers of nonwovens, is a global, technology-driven developer, producer and marketer of engineered materials.
With the broadest range of process technologies in the nonwovens industry, PGI is a global supplier to leading consumer and industrial product manufacturers. The company operates 21 manufacturing facilities throughout the world.
marketing@alchempro.com
