L.B. Foster Company Amends Credit Agreement
May 02 2019 - 1:31PM
L.B. Foster Company (NASDAQ: FSTR), a leading manufacturer and
distributor of products and services for transportation and energy
infrastructure, today announced that on April 30, 2019, it amended
its revolving credit facility agreement to provide for a maturity
date of April 30, 2024 and improve the interest rate spreads
associated with the facility. Key elements to the amendment
include:
- The facility was modified to $140 million in order to better
align the facility with our anticipated needs as well as to reduce
borrowing costs, and provides for incremental borrowings of up to
$50 million.
- The Company’s obligations under the amendment will be secured
by the grant of a security interest by the borrowers, certain
Canadian and United Kingdom subsidiaries, and domestic guarantors
in substantially all of the assets owned by such entities.
Additionally, the equity interests in each of the loan parties,
other than the Company, and the equity interests held by each loan
party in their subsidiaries, shall be pledged to the lenders as
collateral for the lending obligations.
- There are no restrictions on the amount of dividends,
distributions and redemptions under the amended facility so long as
the Company remains in compliance before and immediately after any
such transactions.
- Acquisitions will be permitted up to $50 million per
acquisition and an aggregate purchase price of $100 million through
the five year term of the amended facility.
James P. Maloney, Senior Vice President and Chief Financial
Officer, said: “This revised credit agreement provides L.B. Foster
with the capacity it needs to manage its day to day operations and
to execute on business opportunities that benefit our
shareholders. We are pleased with the amended interest rate
pricing associated with the agreement which is favorable to the
Company and is a result of our current financial strength and
forward business outlook.”
The Company’s five bank group is led by PNC Bank, N.A. as
Administrative Agent, with Bank of America N.A. and Wells Fargo
Bank N.A. and Citizens Bank, N.A., as Co-Syndication Agents, and
BMO Harris Bank, N.A. as a participant.
Additional information concerning the revolving credit facility
can be found in the Current Report on Form 8-K filed by the
Company.
About L.B. Foster CompanyL.B. Foster is a
leading manufacturer and distributor of products and services for
transportation and energy infrastructure with locations in North
America and Europe. For more information, please visit
www.lbfoster.com.
This release may contain “forward-looking” statements within the
meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and Section 27A of the Securities Act of 1933, as
amended. Many of the forward-looking statements are located in
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” (“MD&A”). Forward-looking statements
provide management's current expectations of future events based on
certain assumptions and include any statement that does not
directly relate to any historical or current fact. Sentences
containing words such as “believe,” “intend,” “plan,” “may,”
“expect,” “should,” “could,” “anticipate,” “estimate,” “predict,”
“project,” or their negatives, or other similar expressions of a
future or forward-looking nature generally should be considered
forward-looking statements. Forward-looking statements in this
release are based on current expectations and assumptions about
future events that involve inherent risks and uncertainties and may
concern, among other things, L.B. Foster Company’s (the
“Company’s”) expectations relating to our strategy, goals,
projections, and plans regarding our financial position, liquidity,
capital resources, and results of operations; the outcome of
litigation and product warranty claims; decisions regarding our
strategic growth initiatives, market position, and product
development. While the Company considers these expectations and
assumptions to be reasonable, they are inherently subject to
significant business, economic, competitive, regulatory, and other
risks and uncertainties, most of which are difficult to predict and
many of which are beyond the Company’s control. The Company
cautions readers that various factors could cause the actual
results of the Company to differ materially from those indicated by
forward-looking statements. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. Among the factors that could cause the actual
results to differ materially from those indicated in the
forward-looking statements are risks and uncertainties related to:
environmental matters, including any costs associated with any
remediation and monitoring; a resumption of the economic slowdown
we experienced in previous years in the markets we serve; the risk
of doing business in international markets; our ability to
effectuate our strategy, including cost reduction initiatives, and
our ability to effectively integrate acquired businesses and
realize anticipated benefits; costs of and impacts associated with
shareholder activism; a decrease in freight or passenger rail
traffic; the timeliness and availability of materials from our
major suppliers as well as the impact on our access to supplies of
customer preferences as to the origin of such supplies, such as
customers' concerns about conflict minerals; labor disputes; the
continuing effective implementation of an enterprise resource
planning system; changes in current accounting estimates and their
ultimate outcomes; the adequacy of internal and external sources of
funds to meet financing needs, including our ability to negotiate
any additional necessary amendments to our credit agreement or the
terms of a new credit agreement; the Company’s ability to manage
its working capital requirements and indebtedness; domestic and
international taxes, including estimates that may impact these
amounts; foreign currency fluctuations; inflation; domestic and
foreign government regulations, including tariffs; economic
conditions and regulatory changes caused by the United Kingdom’s
pending exit from the European Union, including the possibility of
a “no-deal Brexit;” sustained declines in energy prices; a lack of
state or federal funding for new infrastructure projects; an
increase in manufacturing or material costs; the loss of future
revenues from current customers; and risks inherent in litigation.
Should one or more of these risks or uncertainties materialize, or
should the assumptions underlying the forward-looking statements
prove incorrect, actual outcomes could vary materially from those
indicated. Significant risks and uncertainties that may affect the
operations, performance, and results of the Company’s business and
forward-looking statements include, but are not limited to, those
set forth under Item 1A, “Risk Factors,” and elsewhere in our
Annual Report on Form 10-K for the year ended December 31, 2018, or
as updated and amended by Item 1A “Risk Factors,” in Part II of our
Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission.
The forward-looking statements in this report are made as of the
date of this report and we assume no obligation to update or revise
any forward-looking statement, whether as a result of new
information, future developments, or otherwise, except as required
by the federal securities laws.
Investor Relations:Judith Balog(412)
928-3417investors@lbfoster.com
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