Lawson Products Announces New Credit Facility
October 14 2019 - 7:30AM
Business Wire
Commitments upsized to $100 million, plus an
accordion feature
Further supports acquisition and organic
growth strategies
JPMorgan Chase and Bank of America Join Bank
Group
Lawson Products, Inc. (NASDAQ: LAWS) (“Lawson” or the
“Company"), a distributor of products and services to the MRO
marketplace, has entered into a new credit agreement increasing its
maximum borrowing capacity from $40 million to $100 million. The
new agreement also includes an accordion feature, subject to
certain criteria as well as obtaining additional commitments from
its lenders that would provide meaningful additional borrowing
capacity. The five-year agreement provides for increased capacity
for future acquisitions, combines multiple existing credit
facilities and lowers borrowing spreads and unused commitment
fees.
"We are extremely pleased to expand our bank group to include
JPMorgan Chase and Bank of America and continue our long-term
relationship with CIBC Bank USA, which allows us to access
additional capital," said Ron Knutson, executive vice president and
chief financial officer. “Our ability to significantly increase our
access to capital and partner with these world-class financial
institutions further demonstrates the financial strength of the
Company. With this added financial flexibility, we plan to continue
the strategic growth of our business, both through acquisitions, as
well as investments in our operations to further drive organic
growth.”
Under the credit agreement, JPMorgan Chase Bank N.A. serves as
Administrative Agent, Sole Bookrunner and Sole Lead Arranger. CIBC
Bank USA and Bank of America, N.A. also serve as lenders under the
credit agreement.
About Lawson Products,
Inc.
Founded in 1952, Lawson Products, Inc., headquartered in
Chicago, IL, sells and distributes specialty products to the
industrial, commercial, institutional and government maintenance,
repair and operations market (MRO). The Company is dedicated to
helping customers in the U.S. and Canada lower their total cost of
operation by increasing productivity and efficiency. The
combination of Lawson Managed Inventory and the Company’s
problem-solving professionals ensures customers always have the
right parts to handle the job. Through The Bolt Supply House,
customers in Western Canada have access to products at several
branch locations. Under its Kent Automotive brand, the company
provides collision and mechanical repair products to the automotive
aftermarket.
Lawson Products ships from several strategically located
distribution centers to customers in all 50 states, Puerto Rico,
Canada, Mexico, and the Caribbean.
For additional information, please visit
https://www.lawsonproducts.com/ or
https://www.kent-automotive.com/.
This Release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. The terms "may," "should,"
"could," "anticipate," "believe," "continues," "estimate,"
"expect," "intend," "objective," "plan," "potential," "project" and
similar expressions are intended to identify forward-looking
statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. These statements are based on
management's current expectations, intentions or beliefs and are
subject to a number of factors, assumptions and uncertainties that
could cause or contribute to such differences or that might
otherwise impact the business and include the risk factors set
forth in Item 1A of the December 31, 2018, Form 10-K filed on March
4, 2019. The Company undertakes no obligation to update any such
factor or to publicly announce the results of any revisions to any
forward-looking statements whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191014005096/en/
Investor Relations: Lawson Products, Inc. Ronald J.
Knutson Executive Vice President and Chief Financial Officer
773-304-5665
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