Rocky Brands Receives Commitment for New Credit Facility
September 24 2010 - 7:00AM
Business Wire
Rocky Brands, Inc. (Nasdaq: RCKY) today announced it has
received a financing commitment, subject to customary closing
conditions, from PNC Bank for a revolving credit facility totaling
$70 million. The new credit facility will replace the Company’s
existing revolving credit facility, the remaining balance of
approximately $11 million under term loans, and the remaining
balance of approximately $2 million under mortgage loans. The term
of the new credit facility will be five years and the initial
interest rate will be LIBOR plus 1.75%.
Mike Brooks, Chairman and Chief Executive Officer, commented,
"We are very pleased to have secured this new credit facility and
believe it underscores the confidence our lender has in the
Company's future prospects. Importantly, with more favorable terms,
we anticipate this new revolving credit facility will reduce our
annual interest expense by approximately $2 million next year while
at the same time providing us with less expensive capital to expand
our business over the next five years."
The transaction is anticipated to close in October 2010. The
Company expects to recognize a non-cash charge of approximately $1
million in the fourth quarter of 2010 representing deferred
financing costs relating to the extinguishment of the current
credit facility, term loans and mortgage loans described above.
About Rocky Brands,
Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and
marketer of premium quality footwear and apparel marketed under a
portfolio of well recognized brand names including Rocky®, Georgia
Boot®, Durango®, Lehigh®, and the licensed brands Michelin® and
Mossy Oak®.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of
1934, as amended, which are intended to be covered by the safe
harbors created thereby. Those statements include, but may not be
limited to, all statements regarding intent, beliefs, expectations,
projections, forecasts, and plans of the Company and its
management, and include statements in this press release regarding
the closing of the new revolving credit facility (paragraph 1),
reduction in interest expense (paragraph 2), and closing of the
transaction and expected non-cash charge (paragraph 3). These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation, the risk that the
revolving credit facility, which is subject to various closing
conditions, may not close as anticipated and the various risks
inherent in the Company’s business as set forth in periodic reports
filed with the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2009 (filed March 2, 2010) and the Company’s quarterly reports
on Form 10-Q for the quarters ended March 31, 2010 (filed May 3,
2010) and June 30, 2010 (filed August 3, 2010). One or more of
these factors have affected historical results, and could in the
future affect the Company’s businesses and financial results in
future periods and could cause actual results to differ materially
from plans and projections. Therefore there can be no assurance
that the forward-looking statements included in this press release
will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included
herein, the Company, or any other person should not regard the
inclusion of such information as a representation that the
objectives and plans of the Company will be achieved. All
forward-looking statements made in this press release are based on
information presently available to the management of the Company.
The Company assumes no obligation to update any forward-looking
statements.
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