[IMAGEMAX LOGO]
Maximizing Information Management
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newsrelease
www.imagemax.com
For Immediate Release PR-200008
Contact:
David C. Carney, Chairman 215-628-3600, x114
Mark P. Glassman, Chief Financial Officer 215-628-3600, x104
IMAGEMAX ANNOUNCES COMPLETION OF SENIOR DEBT REFINANCING
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Fort Washington, PA, June 13, 2000 - ImageMax, Inc. (OTCBB: IMAG) announced
today the closing of a new $14.5 million senior credit facility, consisting of a
two-year $7.0 million revolving credit line and a four-year $7.5 million term
loan, with Commerce Bank, NA (NYSE: CBH) of Cherry Hill, NJ and FirsTrust Bank
of Conshohocken, PA.
Under the revolving credit facility, interest is payable monthly at the
prime rate plus 1.5% (effective rate of 11.0% as of the closing), with principal
payable at the end of term in June 2002. Borrowing availability is based on the
level of the Company's eligible accounts receivable, as defined in the
agreement. As of the closing, the Company had approximately $5.1 million
outstanding under the revolver.
Under the term loan, interest is payable monthly at prime plus 2.0%
(effective rate of 11.5%), with consecutive quarterly principal payments of
$500,000 commencing September 30, 2000 until the end of the term on March 31,
2004. In addition, on an annual basis, the Company is required to reduce the
principal amount outstanding under the term loan to the extent that EBITDA, as
adjusted, exceeds certain specified levels, as defined in the agreement.
The banks received warrants to purchase a total of 100,000 shares of common
stock at $3.50. The credit facility is secured by substantially all assets of
the Company and requires maintenance of various financial and restrictive
covenants.
"This transaction completes an extensive refinancing process," commented
ImageMax Chairman David C. Carney. "We are delighted to have Commerce and
FirsTrust as our banking partners."
"With new bank financing in place," added Mark P. Glassman, Chief Financial
Officer, "the Company can refocus its efforts on growing its core operations,
and also consider synergistic in-market acquisitions." In addition Glassman
said, "the terms of the credit facility are consistent with the Company's
objective of reducing its current debt level while still having the ability to
borrow when appropriate to meet strategic goals."
ImageMax is a leading provider of document management services and products
that enable clients to more efficiently capture, index, and retrieve documents
across a variety of media, including the Internet. The Company operates from 30
facilities across the country.
Statements in this press release which are not historical in fact, such as
the benefits of the bank financing, the ability to invest in and finance capital
equipment and to acquire synergistic businesses, and the Company's future
operating results and cash flows, are forward-looking statements that involve
risk and uncertainty, including those set forth in "Business Risk Factors" in
ImageMax's 1999 Annual Report on Form 10-K and other ImageMax filings with the
Securities and Exchange Commission, and risks associated with the results of the
continuing operations of ImageMax. Accordingly, there is no assurance that the
results in the forward-looking statements will be achieved.
