NEWS RELEASE
CONTACT:
Robert L. Montgomery, Jr.
Executive Vice President and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5405
COLUMBUS MCKINNON CORPORATION ANNOUNCES REFINANCING OF CREDIT FACILITY
AMHERST, N.Y., November 27, 2002 -- Columbus McKinnon Corporation (Nasdaq:
CMCO), today announced the refinancing of its existing senior secured $150
million credit facility with a new $100 million senior secured credit
facility and a new $70 million senior second secured term loan executed in a
private transaction. The new credit facility matures on March 31, 2007. A
portion of the senior second secured term loan matures in May 2007 and the
remaining balance in November 2007. Fleet Securities, Inc. arranged the
senior credit facility and placed the senior second secured term loan.
Timothy T. Tevens, President and Chief Executive Officer, said, "The
refinancing of our existing credit facility, which was going to mature in
March 2003, has stabilized our capital structure and extended the maturity
of our senior debt by approximately four years while providing continued
liquidity to fund our working capital needs. This transaction reduces our
financial risk and provides us with the time and flexibility to manage our
business through this difficult economic environment. It also allows us to
continue to focus on additional facility rationalizations and implementing
lean manufacturing which will further reduce costs and support accelerated
debt repayment."
The senior secured credit facility is comprised of a $67 million revolver
and $33 million term loan, which amortizes quarterly over seven years
starting on March 31, 2003. The senior second secured term loan has no
scheduled amortization and is prepayable at the company's option without
penalty.
The new credit agreements will be filed with the Company's current report on
Form 8-K to be filed today with the Securities and Exchange Commission.
Columbus McKinnon is a leading worldwide designer and manufacturer of
material handling products, systems and services which efficiently and
ergonomically move, lift, position or secure material. Key products include
hoists, cranes, chain and forged attachments. The Company is focused on
commercial and industrial applications that require the safety and quality
provided by its superior design and engineering know-how. Comprehensive
information on Columbus McKinnon is available on its web site at
HTTP://WWW.CMWORKS.COM
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This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements concerning
future revenue and earnings, involve known and unknown risks,
uncertainties and other factors that could cause the actual results of
the Company to differ materially from the results expressed or implied
by such statements, including general economic and business conditions,
conditions affecting the industries served by the Company and its
subsidiaries, conditions affecting the Company's customers and
suppliers, competitor responses to the Company's products and services,
the overall market acceptance of such products and services, the
Company's ability to renegotiate its senior debt, and other factors
disclosed in the Company's periodic reports filed with the Securities
and Exchange Commission. The Company assumes no obligation to update
the forward-looking information contained in this release.