CONTACT:
Karen L. Howard
Vice President - Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5550
KAREN.HOWARD@CMWORKS.COM
COLUMBUS MCKINNON CLOSES ON NEW REVOLVING CREDIT FACILITY
AMHERST, NY, March 16, 2006 -- Columbus McKinnon Corporation (Nasdaq: CMCO)
announced today that it closed on a new $75 million Revolving Senior Credit
Facility that replaced its previous $65 million facility. The new variable rate
facility, which has the ability to expand up to $125 million, expires in
February 2010, and is otherwise available to February 2011 if the Company's
Senior Secured 10% Notes are repaid or extended by February 2010. It is
currently available at a rate of LIBOR plus 100 basis points. The Revolving
Credit Facility is secured by all domestic inventory, receivables, equipment,
real property, subsidiary stock (limited to 65% for foreign subsidiaries) and
intellectual property. The Company currently has no borrowings drawn against its
revolving credit facility, but has approximately $10 million of letters of
credit committed against it. The intended use of proceeds is to refinance
existing or future debt, working capital and acquisitions.
The interest rate on the new line fluctuates based on the Company's senior
debt leverage ratio. The range of the interest rate spread over LIBOR is 87.5
basis points up to 175 basis points. At January 2, 2006, which was the end of
the Company's third quarter of fiscal 2006, Columbus McKinnon had $75.3 million
in Senior Secured 10% Notes due August 1, 2010, which are entitled to redemption
at the Company's option on August 1, 2007. On and after August 1, 2007, the 10%
Notes are redeemable at prices declining annually to 100% on and after August 1,
2009. Columbus McKinnon had $151.5 million in shareholders' equity at the end of
its third quarter of fiscal 2006.
Timothy T. Tevens, President and Chief Executive Officer of Columbus
McKinnon, commented, "Securing a more favorable revolving line was another step
in our financial strategy to improve our capital structure, reduce our cost of
capital and enable us to have the financial flexibility to execute our strategic
growth plans. As we continue to expand our markets beyond the U.S. and gain
market share, we anticipate possible bolt-on acquisitions that will logically
expand our Products segment offerings and enhance our market reach."
ABOUT COLUMBUS MCKINNON
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.
SAFE HARBOR STATEMENT
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, 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.
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