Drew Industries Incorporated Announces New Credit Agreements
announced that it and its subsidiaries, Kinro, Inc. and Lippert Components,
Inc. (the “Company”), entered into a new
with JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. (collectively, the
“Lenders”), which expires in
the Company’s previous
expire in
Interest on borrowings from the credit facility can be designated from
time to time by the Company as either LIBOR-based, or Prime Rate-based.
Interest on LIBOR-based borrowings will be LIBOR plus additional interest
ranging from 2% to 2.8% (currently 2%). Interest on Prime Rate-based
borrowings will be the Prime Rate, as defined (but not less than 2.5%), plus
additional interest ranging from 0% to 0.8% (currently 0%). The additional
interest will depend on the Company’s performance and financial condition.
Interest rates under the new credit facility are generally higher than under
the prior credit facility. Drew currently has no borrowings under either the
new or prior credit facility.
Simultaneously, the Company entered into a
facility with Prudential Investment Management, Inc., and its affiliates
(“Prudential”), replacing the Company’s previous
facility with Prudential, of which
previously borrowed
transactions, of which
The new shelf-loan facility provides for Prudential to consider
purchasing, at the Company’s request, in one or a series of transactions,
Senior Promissory Notes of the Company in the aggregate principal amount of up
to
original issue of each Note. Prudential has no obligation to purchase the
Notes. Interest payable on the Notes will be at rates determined within five
business days after the Company issues a request to Prudential. The shelf-loan
facility expires in
Borrowings under both the credit facility and the shelf-loan facility are
secured on a pari passu basis by first priority liens on the capital stock or
other equity interests of each of the Company’s direct and indirect
subsidiaries. Pursuant to the credit facility and the shelf-loan facility, the
Company is required to meet certain financial covenants, with which the
Company is currently in compliance.
Other than for normal working capital purposes, which are not expected to
be significant, the Company does not currently have any plans to borrow under
either the credit facility or the shelf-loan facility.
About Drew
Drew, through its wholly owned subsidiaries, Kinro and Lippert Components,
supplies a broad array of components for RVs and manufactured homes, including
windows, doors, chassis, chassis parts, bath and shower units, axles, and
upholstered furniture. In addition, Drew manufactures slide-out mechanisms for
RVs, and trailers primarily for hauling boats. Currently, from 36 factories
located throughout
manufacturers of RVs and manufactured homes in an efficient and cost-effective
manner. Additional information about Drew and its products can be found at
http://www.drewindustries.com.
Forward-Looking Statements
This press release may contain certain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995 with
respect to financial condition, results of operations, business strategies,
operating efficiencies or synergies, competitive position, growth
opportunities for existing products, plans and objectives of management,
markets for the Company’s common stock and other matters. Statements in this
press release that are not historical facts are “forward-looking statements”
for the purpose of the safe harbor provided by Section 21E of the Securities
Exchange Act of 1934 and Section 27A of the Securities Act of 1933.
Forward-looking statements, including, without limitation, those relating
to our future business prospects, revenues, expenses and income, whenever they
occur in this press release, are necessarily estimates reflecting the best
judgment of our senior management at the time such statements were made, and
involve a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by forward-looking statements. The
Company does not undertake to update forward-looking statements to reflect
circumstances or events that occur after the date the forward-looking
statements are made. You should consider forward-looking statements,
therefore, in light of various important factors as identified in this press
release and in our Form 10-K for the year ended
subsequent Form 10-Qs filed with the SEC.
There are a number of factors, many of which are beyond the Company’s
control, which could cause actual results and events to differ materially from
those described in the forward-looking statements. These factors include
pricing pressures due to domestic and foreign competition, costs and
availability of raw materials (particularly steel and related components,
vinyl, aluminum, glass and ABS resin), availability of credit for financing
the retail and wholesale purchase of manufactured homes and recreational
vehicles, availability and costs of labor, inventory levels of retailers and
manufacturers, levels of repossessed manufactured homes, the disposition into
the market by FEMA, by sale or otherwise, of RVs or manufactured homes
purchased by FEMA in connection with natural disasters, changes in zoning
regulations for manufactured homes, a sales decline in either the RV or the
manufactured housing industries, the financial condition of our customers,
retention of significant customers, interest rates, oil and gasoline prices,
the outcome of litigation, and adverse weather conditions impacting retail
sales. In addition, national and regional economic conditions and consumer
confidence may affect the retail sale of recreational vehicles and
manufactured homes.
SOURCE Drew Industries Incorporated