Brady Corporation Enters into New Credit Agreement
February 01 2012 - 5:44PM
Business Wire
Brady Corporation (NYSE: BRC), a world leader in identification
solutions, announced that on February 1, 2012, it entered into an
unsecured $300,000,000 revolving credit agreement with a group of
six banks, that replaced and terminated its previous $200,000,000
revolving credit agreement that had been entered into on October 5,
2006 and amended on March 18, 2008. No fees were paid for
terminating the previous credit agreement prior to its expiration
date.
Under the new credit agreement, which has a final maturity date
of February 1, 2017, Brady has the option to select either a base
interest rate (based upon the higher of the federal funds rate plus
one-half of 1 percent or the prime rate of Bank of America plus a
margin based on Brady’s consolidated leverage ratio) or a
Eurocurrency interest rate (at the LIBOR rate plus a margin based
on Brady’s consolidated leverage ratio).
The new credit agreement is guaranteed by Brady’s domestic
subsidiaries and contains various financial covenants, including a
debt-to-EBITDA ratio of 3.25-to-1.0 and an interest coverage ratio
of 3.0-to-1.0. A commitment fee is payable on the unused amount of
the credit facility. Brady intends to use the flexibility provided
by the new agreement to fund future acquisitions, to refinance
existing debt, and for general corporate purposes.
Brady Corporation is an international manufacturer and marketer
of complete solutions that identify and protect premises, products
and people. Brady’s products help customers increase safety,
security, productivity and performance and include high-performance
labels and signs, safety devices, printing systems and software,
and precision die-cut materials. Founded in 1914, the Company has
millions of customers in electronics, telecommunications,
manufacturing, electrical, construction, education, medical and a
variety of other industries. Brady is headquartered in Milwaukee,
Wisconsin and, as of July 31, 2011 employed approximately 6,500
people at operations in the Americas, Europe and Asia-Pacific.
Brady’s fiscal 2011 sales were approximately $1.34 billion. Brady
stock trades on the New York Stock Exchange under the symbol BRC.
More information is available on the Internet at www.bradycorp.com.
Brady believes that certain statements in this news release are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements related to
future, not past, events included in this news release, including,
without limitation, statements regarding Brady’s future financial
position, business strategy, targets, projected sales, costs,
earnings, capital expenditures, debt levels and cash flows, and
plans and objectives of management for future operations are
forward-looking statements. When used in this news release, words
such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or similar
terminology are generally intended to identify forward-looking
statements. These forward-looking statements by their nature
address matters that are, to different degrees, uncertain and are
subject to risks, assumptions and other factors, some of which are
beyond Brady’s control, that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. For Brady, uncertainties arise from the length or
severity of the current worldwide economic downturn or timing or
strength of a subsequent recovery; future financial performance of
major markets Brady serves, which include, without limitation,
telecommunications, manufacturing, electrical, construction,
laboratory, education, governmental, public utility, computer,
transportation; difficulties in making and integrating
acquisitions; risks associated with newly acquired businesses;
Brady’s ability to develop and successfully market new products;
changes in the supply of, or price for, parts and components;
increased price pressure from suppliers and customers; fluctuations
in currency rates versus the US dollar; unforeseen tax
consequences; potential write-offs of Brady’s substantial
intangible assets; Brady’s ability to retain significant contracts
and customers; risks associated with international operations;
Brady’s ability to maintain compliance with its debt covenants;
technology changes; business interruptions due to implementing
business systems; environmental, health and safety compliance costs
and liabilities; future competition; interruptions to sources of
supply; Brady’s ability to realize cost savings from operating
initiatives; difficulties associated with exports; risks associated
with restructuring plans; risks associated with obtaining
governmental approvals and maintaining regulatory compliance; and
numerous other matters of national, regional and global scale,
including those of a political, economic, business, competitive and
regulatory nature contained from time to time in Brady’s U.S.
Securities and Exchange Commission filings, including, but not
limited to, those factors listed in the “Risk Factors” section
located in Item 1A of Part I of Brady’s Form 10-K for the
year ended July 31, 2011. These uncertainties may cause Brady’s
actual future results to be materially different than those
expressed in its forward-looking statements. Brady does not
undertake to update its forward-looking statements.
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