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EXHIBIT 99
PAMECO CORPORATION
CONTACT:
Lora Trent Van Negris/Philip J. Denning
Pameco Corporation Kehoe, White, Van Negris & Company, Inc.
(770) 798-0600 (212) 396-0606
FOR IMMEDIATE RELEASE
Pameco Corporation Obtains
$12.5 Million Private Equity Financing and Amends
Senior Credit Facility
NORCROSS, GA - August 28, 2000 - Pameco Corporation (NYSE: PCN), a leading
distributor of HVAC systems and equipment and refrigeration products in the
United States, today announced that as part of the second phase of a planned
restructuring of the Company, Littlejohn Fund II, L.P. and Quilvest American
Equity Ltd. have invested an aggregate of $10 million, and Littlejohn agreed to
invest an additional $2.5 million within 30 days, in each case, in exchange for
shares of a new series of the Company's Preferred Stock pursuant to the existing
February 18, 2000 Securities Purchase Agreement. The Preferred Stock is
convertible into shares of the Company's Common Stock at an initial conversion
price per share of $3.38 and will have the right to vote with the Common Stock
on an as-converted basis.
Dixon R. Walker, President and Chief Executive Officer of Pameco, stated:
"Improving our financial infrastructure is a major component in achieving our
two primary goals for fiscal year 2001: improving customer relations and
optimizing our distribution network. The net proceeds from the Purchasers'
equity investment will be applied to reduce outstanding indebtedness under the
Company's existing senior revolving credit facility, thereby freeing up
additional availability to be used for working capital and general corporate
purposes. The additional financial flexibility will help us to improve our
overall effectiveness and efficiency."
Simultaneously, the Company announced that it has amended its senior credit
facility and related documents resulting in additional availability and to
change certain covenant thresholds in connection with the Preferred Stock
purchase.
Littlejohn must obtain the required clearances under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 to exercise its voting and conversion rights
under the new Preferred Stock.
Pameco is one of the largest national distributors of HVAC systems and equipment
and refrigeration products in the United States, with predecessor corporations
dating back to 1931, and has established a leading position in the consolidating
distribution segment of the climate control industry. Pameco's products include
a complete range of heating, air conditioning and refrigeration ("HVAC/R")
equipment, parts and supplies for the light commercial and residential HVAC
markets and commercial refrigeration market. The products sold by Pameco are
used principally for the repair and replacement of existing HVAC/R and for new
construction.
-more-
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Pameco Corporation
Page Two
August 25, 2000
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Certain statements contained in this press release are "forwarded-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, including without limitation, the Company's plans for future business
development, industry position and industry condition, the Company's financial
condition and structure, and the Company's ability to engage in an acquisition
program as well as the outcome thereof. Such forward-looking statements are
subject to risk, uncertainties and other factors that could cause actual results
to differ materially from future results expressed or implied by such forward-
looking statements. Investors are cautioned than any forward-looking statements
are not guarantees of future performance and involve risks and uncertainties and
that actual results may differ materially from those contemplated by such
forward-looking statements. Such risks include, without limitation, risks
associated with the Company not being able to successfully implement its new
strategies, the risk that new acquisitions, if any will not be successfully
integrated into the Company, the seasonality and cyclicality of the Company's
sales, the Company's competition, the Company's dependence on supplier
relationships, the increased presence of buying groups and risks related to the
Company's borrowings.
Note: Additional information about Pameco Corporation is available on Pameco's
World Wide Web site on the Internet located at http://www.pameco.com.
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