[LOGO] EAGLE SUPPLY GROUP, INC.
CONTACT: OR: Investor Relations Counsel:
Douglas P. Fields, Chairman and CEO Tom Ennis
Frederick M. Friedman, Executive VP & CFO The Equity Group Inc.
Tel: 212-986-6190 Tel: 212-836-9607
Fax: 212-972-0326 Fax: 212-421-1278
www.eaglesupplygroup.com www.theequitygroup.com
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FOR IMMEDIATE RELEASE
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EAGLE SUPPLY GROUP, INC.
ENTERS INTO AMENDED AND EXPANDED $45 MILLION CREDIT FACILITY
New Provision Makes Available Up to $8 Million for Acquisitions
NEW YORK, N.Y. -- June 27, 2000 -- Eagle Supply Group, Inc. ("Eagle" or the
"Company") (NASDAQ SmallCap: EEGL and EEGLW), the fourth largest wholesale
distributor of residential roofing and masonry supplies and related products
in the United States, announced that its operating subsidiaries have entered
into an amended loan agreement, containing more favorable terms, with
Fleet Capital Corporation ("Fleet").
The amended loan agreement with Fleet increases Eagle's total credit facility
by $5 million, from $40 million to $45 million, and lowers the average
interest rate by approximately 50 basis points (1/2%). In addition, the
inventory-borrowing sub-limit has been increased from $15 million to $20
million, and all other caps on borrowings under the revolving credit facility
have been eliminated. Most importantly, an amended provision makes available
up to $8 million for acquisitions (assuming availability under the borrowing
base). Including approximately $6 million in cash and cash equivalents held
at Eagle, the Company presently has approximately $14 million available for
acquisitions (subject to availability under the borrowing base), separate
from any additional debt capacity based on the assets and cash flow of
potential acquisitions.
Commenting on the amended loan agreement, Douglas P. Fields, Chairman and
Chief Executive Officer, stated, "We believe that this agreement reflects
Fleet's confidence in our business plan, management and prospects. The
availability of the additional funding should enhance Eagle's flexibility in
financing potential acquisitions and, at the same time, support the Company's
continued rapid internal growth. The lower interest rate and other favorable
terms should help to reduce our costs of funds and provide a strong financial
foundation for the growth we anticipate in the future. In the current fiscal
year ending this month, Eagle's revenues should be approximately $185 million,
a gain of approximately $25 million over the $160 million reported last
fiscal year, all without the benefit of any new acquisitions this fiscal
year."
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122 East 42nd Street * Suite 1116 * New York, NY 10168
<PAGE> EX-10.41 - Pg. 1
Frederick M. Friedman, Eagle's Chief Financial Officer, stated, "The
agreement with Fleet is the result of many months of hard work and reflects
the strong growth and sound financial condition of the Company. We
appreciate the strong support of our lenders, including Fleet and GE Capital
Corporation, among others."
James E. Helzer, Eagle's President and Chief Operating Officer, stated, "The
amended credit facility will provide the funds necessary to support our
program of opening new distribution centers, including two which were opened
this month, and our continuing trend of strong internal growth."
Eagle, with corporate offices in New York City and operations headquarters in
Mansfield, Texas, is the fourth largest wholesale distributor of residential
roofing and masonry supplies and related products in the United States.
Eagle sells primarily to contractors and subcontractors engaged in roofing
repair and construction of new residences and commercial properties. The
Company sells its products through its own distribution facilities and direct
sales force. Eagle currently operates a network of 36 distribution centers
in twelve states, including locations in Florida (11), Texas (9), Colorado
(5), Alabama (3), and one each in Indiana, Virginia, Kansas, Minnesota,
Mississippi, Louisiana, Illinois and Wisconsin.
This document includes statements that may constitute forward-looking
statements made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Eagle would like to caution
readers regarding certain forward-looking statements in this document and in
all of its communications to shareholders and others, press releases,
securities filings, and all other communications. Statements that are based
on management's projections, estimates and assumptions are forward-looking
statements. The words "believe," "expect," "anticipate," "intend," "will,"
"should," and similar expressions generally identify forward-looking
statements. While Eagle believes in the veracity of all statements made
herein, forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by Eagle, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies and known and unknown risks. Many of the
uncertainties and contingencies can affect events and Eagle's actual results
and could cause its actual results to differ materially from those expressed
in any forward-looking statements made by, or on behalf of, Eagle. Some of
the factors that could cause actual results or future events to differ
materially include Eagle's inability to find suitable acquisition candidates
or financing on terms commercially reasonable to Eagle, inability to find
suitable facilities and personnel to open or maintain new branch locations,
interruptions or cancellation of existing sources of supply, the pricing of
and demand for distributed products, the presence of competitors with greater
financial resources, economic and market factors, and other factors. Please
see the "Risk Factors" in Eagle's filings with the Securities and Exchange
Commission for a description of some, but not all, risks, uncertainties and
contingencies.
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122 East 42nd Street * Suite 1116 * New York, NY 10168
<PAGE> EX-10.41, Pg. 2
