EXHIBIT 99
[INTERFACE LOGO]
CONTACT: Daniel T. Hendrix
President and Chief Executive Officer
Patrick C. Lynch
Chief Financial Officer
(770) 437-6800
FOR IMMEDIATE RELEASE
Morgen-Walke Associates:
Christine Mohrmann, Lauren Levine
Media contact: Steve DiMattia
(212) 850-5600
INTERFACE ANNOUNCES CLOSING OF DEBT REFINANCING
ATLANTA, Georgia, January 24, 2002 -- Interface, Inc. (Nasdaq: IFSIA)
today announced the closing on January 17, 2002 of its private offering of $175
million aggregate principal amount of 10.375% senior notes due in 2010. Four
investment banks participated as initial purchasers in the notes offering. The
$171.5 million of net proceeds from the sale of the notes were used to refinance
the Company's revolving credit facility, which was amended and restated in
connection with the offering.
The amended and restated credit facility provides for $100 million of
revolving credit, with varying interest rates based on the Company's ability to
meet certain performance criteria. The facility will mature on May 15, 2005,
subject to a possible extension of that maturity date to January 17, 2007 if the
Company meets certain conditions relating to the repayment of long-term debt.
Daniel T. Hendrix, President and Chief Executive Officer, commented,
"We are pleased to have the continued strong support of the bond market and our
lenders in the issuance of our new senior notes and in the restructuring of our
credit facility. Through these transactions and other initiatives, we continue
to improve our financial position and to enhance our ability to weather the
current soft economic environment."
Mr. Hendrix continued: "Our longer-term strategy in this area is to use
our strong free cash flow generation position to repay debt more rapidly than
required and increase shareholder value on the strength of our favorable
operating margins."
The notes were sold to qualified institutional buyers in reliance on
Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"),
and to non-U.S. persons in reliance on Regulation S under the Securities Act.
The notes have not been registered under the Securities Act or any state
securities laws. Therefore, the notes may not be offered or sold in the United
States absent registration or an applicable exemption from such registration
requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction in which such
offering, solicitation or sale would be unlawful. This press release is issued
pursuant to and in
INTERFACE ANNOUNCES CLOSING
OF DEBT REFINANCING PAGE 2
accordance with Rule 135c under the Securities Act.
Interface, Inc. is a recognized leader in the worldwide commercial
interiors market, offering floorcoverings, fabrics, interior architectural
products and specialty chemicals. The Company is the world's largest
manufacturer of modular carpet under the Interface, Heuga, Bentley and Prince
Street brands, and through its Bentley Mills and Prince Street brands, enjoys a
leading position in the high quality, designer-oriented segment of the broadloom
carpet market. The Company provides specialized carpet replacement,
installation, maintenance and reclamation services through its Re:Source
Americas service network. The Company is a leading producer of interior fabrics
and upholstery products, which it markets under the Guilford of Maine, Stevens
Linen, Toltec, Intek, Chatham, Camborne and Glenside brands. The Company
provides specialized fabrics services through its TekSolutions business. In
addition, the Company produces raised/access flooring systems under the C-Tec,
Intercell and Atlantic brands; produces adhesives and chemicals used in various
rubber and plastic products; offers Intersept, a proprietary antimicrobial used
in a variety of interior finishes; and sponsors the Envirosense Consortium in
its mission to address workplace environmental issues.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: Except for historical information contained herein, the other
matters set forth in this news release are forward-looking statements. The
forward-looking statements set forth above involve a number of risks and
uncertainties that could cause actual results to differ materially from any such
statement, including risks and uncertainties associated with economic conditions
in the commercial interiors industry as well as the risks and uncertainties
discussed in the Company's Safe Harbor Compliance Statement for Forward-Looking
Statements, included as Exhibit 99.1 to the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2000, which discussion is incorporated
herein by this reference, including, but not limited to, the discussion of
specific risks and uncertainties under the headings "Strong Competition: The
Company competes with a large number of other manufacturers in the highly
competitive commercial floorcovering products market, and certain of these
competitors have financial resources in excess of the Company's," "Cyclical
Nature of Industry: Sales of the Company's principal products may be affected by
cycles in the construction and renovation of commercial and institutional
buildings," "Reliance on Key Personnel: The Company's continued success depends
to a significant extent upon the efforts, abilities and continued service of its
senior management executives and its design consultants," "Risks of Foreign
Operations: The Company's substantial international operations are subject to
various political, economic and other uncertainties, such as foreign currency
exchange restrictions," "Reliance on Petroleum-Based Raw Materials: Large
increases in the cost of petroleum-based raw materials, which the Company is
unable to pass through to its customers, could adversely affect the Company,"
"Reliance on Third Party for Supply of Fiber: Unanticipated termination or
INTERFACE ANNOUNCES CLOSING
OF DEBT REFINANCING PAGE 3
interruption of the Company's arrangement with its primary third-party supplier
of synthetic fiber could have a material adverse effect on the Company," and
"Restrictions Due to Substantial Indebtedness: The Company's indebtedness, which
is substantial in relation to its shareholders' equity, requires the Company to
dedicate a substantial portion of its cash flow from operations to service debt
and governs certain other activities of the Company." Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform Act of
1995 and, as such, speak only as of the date made. The Company assumes no
responsibility to update or revise forward-looking statements made in this press
release and cautions readers not to place undue reliance on any such
forward-looking statements.
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