Breeze-Eastern Announces Completion of Refinancing
August 28 2008 - 4:30PM
Business Wire
Breeze-Eastern Corporation (AMEX:BZC) announced today that it has
completed the refinancing of its existing credit facility with a
new $33.0 million credit facility provided by PNC Bank, National
Association and T.D. Bank, N.A. In addition to allowing the Company
to retire all of its existing debt, the new facility provides
working capital for the Company's current and expected future
needs. The new credit facility has a maturity of 60 months and
provides for a $10.0 million revolving line of credit and a term
loan of $23.0 million. The refinancing will retire approximately
$24.0 million of existing debt leaving approximately $9.0 million
available for working capital. Robert L. G. White, President and
Chief Executive Officer of the Company, said, "We are very pleased
to have accomplished this refinancing with PNC and T.D. Bank. The
new credit facility, the cost of which is indexed to LIBOR, has
allowed us to reduce our blended cost of debt to approximately 5%
from the 7% blended rate of our retired debt. Mr. White continued,
"In connection with the retirement of the old debt, we will
recognize a pre-tax charge in the second quarter of fiscal 2009
currently estimated to be $0.55 million, or $.03 per diluted share,
related to the write off of capitalized fees and costs. Costs and
fees associated with the refinancing and new debt are estimated at
$0.45 million and will be capitalized and expensed over the term of
the new financing." Breeze-Eastern Corporation
(http://www.breeze-eastern.com) is the world's leading designer and
manufacturer of sophisticated lifting devices for military and
civilian aircraft, including rescue hoists, cargo hooks and
weapons-lifting systems. The Company, which employs approximately
184 people at its facility in Union, New Jersey, reported sales of
$76 million in the fiscal year ended March 31, 2008. INFORMATION
ABOUT FORWARD-LOOKING STATEMENTS Certain statements in this press
release constitute �forward-looking statements� within the meaning
of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended (the "Acts"). Any statements
contained herein that are not statements of historical fact are
deemed to be forward-looking statements. The forward-looking
statements in this press release are based on current beliefs,
estimates and assumptions concerning the operations, future
results, and prospects of the Company. As actual operations and
results may materially differ from those assumed in forward-looking
statements, there is no assurance that forward-looking statements
will prove to be accurate. Forward-looking statements are subject
to the safe harbors created in the Acts. Any number of factors
could affect future operations and results, including, without
limitation, competition from other companies; changes in applicable
laws, rules and regulations affecting the Company in the locations
in which it conducts its business; interest rate trends; a decrease
in United States government defense spending, changes in spending
allocation or the termination, postponement, or failure to fund one
or more significant contracts by the United States government;
determination by the Company to dispose of or acquire additional
assets; general industry and economic conditions; events impacting
the U.S. and world financial markets and economies; and those
specific risks that are discussed in the Company�s previously filed
Annual Report on Form 10-K for the fiscal year ended March 31,
2008. The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information
or future events.
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