Altra Holdings, Inc. Announces $300 Million Refinancing and Full Redemption of
Its 8.125% Senior Secured Notes Due 2016
BRAINTREE, Mass., Nov. 20, 2012 (GLOBE NEWSWIRE) -- Altra Holdings, Inc.,
(Nasdaq:AIMC) a leading global supplier of electromechanical power
transmission and motion control products, today announced that the Company
entered into a new five year credit agreement among the Company, its
wholly-owned subsidiary Altra Industrial Motion, Inc., and the lenders party
to the credit agreement from time to time, which consists of a $100 million
term loan and a $200 million revolving credit facility. Interest on the
amounts outstanding under the new credit agreement is calculated periodically
using an adjusted LIBOR rate, plus an applicable margin of between 1.375% to
1.875%, or using an alternate base rate, plus an applicable margin of between
0.375% and 0.875%. The credit agreement is guaranteed by the Company's
Concurrently with the refinancing, the Company also announced that, pursuant
to approval by its Board of Directors, the Company gave notice to The Bank of
New York Mellon Trust Company, N.A., the Trustee, under the Indenture
governing the Company's 8.125% Senior Secured Notes (the "Notes") due 2016, of
its intention to redeem all of the remaining Notes outstanding on December 20,
2012 (the "Redemption Date"), in an aggregate principal amount of
approximately $177 million, pursuant to the redemption provisions in the
Indenture. The redemption price for the Notes will be 106.094% of the
principal amount thereof, plus accrued and unpaid interest, if any, to, but
not including, the Redemption Date. The full amount of the term loan, a
portion of the amount of the revolving credit facility, and cash on hand were
used to fund the redemption of the Notes.
"We are very pleased with the results of this refinancing," said Carl
Christenson, President and CEO. "Based on the current interest rate
environment, we expect this transaction will have the potential to provide us
with a reduction of our annual interest expense of approximately $10-$11
million. This transaction furthers our efforts to strengthen our balance sheet
and provides us with the flexibility and capacity to pursue our long-term
organic and acquisition growth strategies."
Additional information concerning the terms and conditions of the redemption
are described in the notice distributed today to registered holders of the
Notes, as required pursuant to the terms of the Indenture. Notes are to be
surrendered to The Bank of New York Mellon Trust Company, N.A., as trustee and
paying agent, in exchange for payment of the redemption price. Questions
relating to, and requests for additional copies of, the notice of redemption
should be directed to The Bank of New York Mellon Trust Company, N.A.
Bondholder Relations Department at (800) 254-2826.
This press release does not constitute an offer to sell or a solicitation of
an offer to buy any of the Notes or any other securities and shall not
constitute an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful.
About Altra Holdings
Altra Holdings, Inc., through its wholly-owned subsidiary Altra Industrial
Motion, Inc., is a leading multinational designer, producer and marketer of a
wide range of mechanical power transmission products. The company brings
together strong brands covering over 40 product lines with production
facilities in eight countries and sales coverage in over 70 countries. Our
leading brands include Boston Gear, Warner Electric, TB Wood's, Formsprag
Clutch, Ameridrives Couplings, Industrial Clutch, Kilian Manufacturing,
Marland Clutch, Nuttall Gear, Stieber Clutch, Wichita Clutch, Twiflex Limited,
Bibby Transmissions, Matrix International, Inertia Dynamics, Huco Dynatork,
Warner Linear, Bauer Gear Motor and PowerFlex.
The Altra Holdings, Inc. logo is available at
All statements, other than statements of historical fact, included in this
release are forward-looking statements, as that term is defined in the Private
Securities Litigation Reform Act of 1995. These statements include, but are
not limited to, any statement that may predict, forecast, indicate or imply
future results, performance, achievements or events. Forward-looking
statements can generally be identified by phrases such as "believes,"
"expects," "potential," "continues," "may," "should," "seeks," "predicts,"
"anticipates," "intends," "projects," "estimates," "plans," "could,"
"designed," "should be," and other similar expressions that denote
expectations of future or conditional events rather than statements of fact.
Forward-looking statements also may relate to strategies, plans and objectives
for, and potential results of, future operations, financial results, financial
condition, business prospects, growth strategy and liquidity, and are based
upon financial data, market assumptions and management's current business
plans and beliefs or current estimates of future results or trends available
only as of the time the statements are made, which may become out of date or
incomplete. Forward-looking statements are inherently uncertain, and investors
must recognize that events could differ significantly from our expectations.
These statements include, but may not be limited to, those comments regarding
the Company's redemption of the Notes, reduction of annual interest expense,
continued efforts to strengthen its balance sheet, and the Company's capacity
and flexibility to support its organic and acquisition growth strategies.
In addition to the risks and uncertainties noted in this release, there are
certain factors that could cause actual results to differ materially from
those anticipated by some of the statements made. These include: (1)
competitive pressures, (2) changes in economic conditions in the United States
and abroad and the cyclical nature of our markets, (3) loss of distributors,
(4) the ability to develop new products and respond to customer needs, (5)
risks associated with international operations, including currency risks, (6)
accuracy of estimated forecasts of OEM customers and the impact of the current
global economic environment on our customers, (7) risks associated with a
disruption to our supply chain, (8) fluctuations in the costs of raw materials
used in our products, (9) product liability claims, (10) work stoppages and
other labor issues, (11) changes in employment, environmental, tax and other
laws and changes in the enforcement of laws, (12) loss of key management and
other personnel, (13) changes in pension and retirement liabilities, (14)
risks associated with compliance with environmental laws, (15) the ability to
successfully execute, manage and integrate key acquisitions and mergers, (16)
failure to obtain or protect intellectual property rights, (17) risks
associated with impairment of goodwill or intangibles assets, (18) failure of
operating equipment or information technology infrastructure, (19) risks
associated with our debt leverage, operating covenants, and adjusting interest
rates under our debt instruments, (20) risks associated with restrictions
contained in our Credit Agreement and Convertible Notes, (21) risks associated
with compliance with tax laws, (22) risks associated with the global recession
and volatility and disruption in the global financial markets, (23) risks
associated with implementation of our new ERP system, (24) risks associated
with the Bauer acquisition and integration, (25) risks associated with the
Company's planned investment in a new manufacturing facility in China, and
(26) other risks, uncertainties and other factors described in the Company's
quarterly reports on Form 10-Q and annual reports on Form 10-K and in the
Company's other filings with the U.S. Securities and Exchange Commission (SEC)
or in materials incorporated therein by reference. Except as required by
applicable law, Altra Holdings, Inc. does not intend to, update or alter its
forward looking statements, whether as a result of new information, future
events or otherwise. AIMC-E
CONTACT: Altra Holdings, Inc.
Christian Storch, Chief Financial Officer
Altra Holdings, Inc.
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