InfraSource Services, Inc. Announces $225 Million Credit Facility
June 30 2006 - 5:01PM
PR Newswire (US)
MEDIA, Pa., June 30 /PRNewswire-FirstCall/ -- InfraSource Services,
Inc. (NYSE:IFS) announced today that it has entered into a six-year
credit agreement with a syndicate of banks led by Bank of America,
N.A. (NYSE:BAC). The new $225 million secured revolving credit
facility matures on June 30, 2012 and replaces the Company's
previous $85 million revolving credit facility and $84 million term
loan. The Company's borrowing availability under the new revolving
credit facility is currently $116 million compared to $51 million
under the previous facility. Initial borrowings will bear interest
at rates that are 150 basis points lower than the previous
facility. Under the new credit agreement, InfraSource will have the
right to seek additional commitments from lenders to increase the
aggregate commitments up to $350 million. "We are extremely pleased
with the results of our refinancing that was completed earlier
today," said Terry Montgomery, Senior Vice President and Chief
Financial Officer of InfraSource. "Our new credit facility will
provide InfraSource with a lower cost of capital, increased
financial flexibility and a longer maturity to support our business
strategy. We look forward to working with Bank of America, the
lenders who are continuing from our previous facility and also
those who are new to the syndicate." The new facility has customary
financial and other covenants including certain restrictions on
liens, investments, indebtedness and dispositions among others. As
a result of entering into the new credit agreement and refinancing
of the previous credit facilities, the Company expects to record a
non-cash charge in the second quarter 2006 of approximately $4.3
million related to the write-off of deferred financing costs.
InfraSource will file a Form 8-K with the Securities and Exchange
Commission in connection with the new credit arrangements. When
filed, the Form 8-K will be available on the Investors section of
the Company's website at http://www.infrasourceinc.com/. About
InfraSource InfraSource Services, Inc. is one of the largest
specialty contractors servicing electric, natural gas and
telecommunications infrastructure in the United States. InfraSource
designs, builds, and maintains transmission and distribution
networks for utilities, power producers, and industrial customers.
Safe Harbor Statement Certain statements contained in this press
release are forward-looking statements. These forward-looking
statements are based upon our current expectations about future
events. When used in this press release, the words "believe,"
"anticipate," "intend," "estimate," "expect," "will," "should,"
"may," and similar expressions, or the negative of such words and
expressions, are intended to identify forward-looking statements,
although not all forward-looking statements contain such words or
expressions. These forward-looking statements generally relate to
our plans, objectives and expectations for future operations and
are based upon management's current estimates and projections of
future results or trends. However, these statements are subject to
a number of risks and uncertainties affecting our business. You
should read this press release completely and with the
understanding that actual future results may be materially
different from what we expect as a result of these risks and
uncertainties and other factors, which include, but are not limited
to: (1) technological, structural and cyclical changes that could
reduce the demand for the services we provide; (2) the impact of
variations between actual and estimated costs under our contracts,
particularly our fixed-price contracts; (3) our ability to
successfully bid for and perform large-scale project work; (4) our
ability to attract and retain qualified personnel; (5) the award of
new contracts and the timing of the performance of those contracts;
(6) project delays or cancellations; (7) the uncertainty of
implementation of the recently enacted federal energy legislation;
and (8) other factors detailed from time to time in our reports and
filings with the Securities and Exchange Commission. Except as
required by law, we do not intend to update forward-looking
statements even though our situation may change in the future.
CONTACT: John A. Curran 610-480-8000 Mahmoud Siddig 212-889-4350
DATASOURCE: InfraSource Services, Inc. CONTACT: John A. Curran of
InfraSource Services, Inc., +1-610-480-8000, , or Mahmoud Siddig,
+1-212-889-4350, , for InfraSource Services, Inc. Web site:
http://www.infrasourceinc.com/
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