Intertape Polymer Group : Announces Extension of ABL
02/02/2012 | 11:48am
Intertape Polymer Group's ABL Maturity Extended under
Favorable Terms
MONTREAL, QUEBEC and BRADENTON, FLORIDA - February 2, 2012
- Intertape Polymer Group Inc. (TSX:ITP)
("Intertape" or the "Company") today
announces the extension of its Asset-Based Loan facility
(ABL) of $200 million with a syndicated lending group led by
Bank of America, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, and Wells Fargo Capital Finance, LLC. All
dollar amounts are denominated in US dollars unless otherwise
indicated.
The Company has reached an agreement for an extension of the
maturity of its ABL to February
2017 from March 2013. The new ABL maturity date can be
accelerated to 90 days prior to August 1, 2014 (the maturity
date of the Company's existing senior subordinated notes) if
such notes have not been retired or if other conditions have
not been met. Under the new agreement, the interest rate will
increase modestly while several other modifications in the
terms provide the Company with greater flexibility.
"Our improved financial performance in 2011 and our debt
reduction in the third and fourth quarters of 2011 enhanced
our ability to extend the maturity of our ABL under favorable
terms. This is an important step towards further improving
our capital structure," said Bernard J. Pitz, Intertape's
Chief Financial Officer.
Increased cash flows from operations during the second half
of 2011 allowed the Company to reduce its total indebtedness
by $18.1 million during the third quarter of 2011 and to
achieve further reductions during the fourth quarter of 2011.
About Intertape Polymer Group Inc.
Intertape Polymer Group Inc. is a recognized leader in the
development and manufacture of specialized polyolefin plastic
and paper based packaging products and complementary
packaging systems for industrial and retail use.
Headquartered in Montreal, Quebec and Bradenton, Florida, the
Company employs approximately 2,000 employees with operations
in
16 locations, including 11 manufacturing facilities in North
America and one in Europe.
Safe Harbor Statement
Certain statements and information included in this press
release constitute forward-looking information within the
meaning of the applicable Canadian securities legislation and
Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements may relate to the
Company's future outlook and anticipated events, the
Company's business, its operations, financial condition
or results. Particularly, statements about the Company's
objectives and strategies to achieve those objectives are
forward-looking statements and are identified by
terms such as "believe," "expect,"
"intend," "anticipate," and similar
expressions. While these
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statements are based on certain factors and assumptions,
which management considers to be reasonable based on
information currently available to it, they may prove to be
incorrect. Forward-looking information involves known and
unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied in such
forward-looking statements. The risks include, but are not
limited to, exchange rate risk, general business, economic
and political conditions, fluctuations in the amount of
available funds under the Company's ABL, the Company's
ability to extend or replace the ABL before maturity, ability
to meet debt service obligations, cost and availability of
raw materials, timing and market acceptance of new products,
competition, international operations, compliance with
environmental regulations, protection of intellectual
property,. A discussion of risk factors is also contained in
the Company's filings with the Canadian securities
regulators and the U.S. Securities and Exchange Commission
("SEC"). Except as required by applicable law, the
Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of
new information, future events or otherwise. This press
release contains certain non-GAAP financial measures as
defined under applicable securities legislation. The Company
believes such non-GAAP financial measures improve the
transparency of the Company's disclosures, and improves
the period-to-period comparability of the Company's
results from its core business operations. As required by
applicable securities legislation, the Company has provided a
reconciliation of these measures to the most directly
comparable GAAP measures.
FOR FURTHER INFORMATION PLEASE CONTACT: MaisonBrison
Communications
Pierre Boucher
514-731-0000
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