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Exhibit 99.1
PRECISIION
PARTNERS
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5605 N. MacArthur Blvd.
Suite 760
Irving, TX 75038
Phone: (972) 580-1550
Fax: (972)
580-1551
Contact: Frank Reilly
EVP & CFO
(972) 580-1550
[email protected]
PRECISION PARTNERS, INC. ANNOUNCES EXTENSION OF WAIVERS FROM BANK GROUP
AND GECC, A NEW $20.8 MILLION EQUIPMENT FINANCING FACILITY
AND A $6.0 MILLION EQUITY CONTRIBUTION
Dallas, TX, - November 30, 2000 - Precision Partners, Inc., a leading supplier
of precision machined metal parts, tooling and assemblies, today announced its
bank group and General Electric Capital Corporation (GECC) has extended waivers
previously received by the company for certain defaults under its credit
facilities and master equipment lease agreement, respectively, through December
8, 2000.
Precision also announced that it was nearing final agreement with its bank group
and GECC with respect to permanent amendments of the credit facilities and
master lease, as well as a new $20.8 million six-year equipment term loan
facility from GECC. In connection with these transactions, Precision will
receive a $6.0 million equity contribution from its existing shareholders and
management.
Proceeds from the equity contribution and the new equipment financing facility
are expected to be used to fund the purchase of approximately $15.0 million of
new equipment and to refinance $11.8 million of the $18.5 million of operating
leases currently outstanding under the master lease with GECC.
The amendment to the credit facilities is expected to include amended financial
covenants, a reduction in Precision's existing revolving credit line from $25.0
million to $22.0 million and an increase in the interest rate payable under its
revolving and term loan facilities of approximately
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1%. The financial covenants in the GECC master lease are also expected to be
amended. Borrowings under the new equipment term loan with GECC are expected to
bear interest at LIBOR plus 400 basis points.
The Company expects to finalize the terms of the amendments and the new
equipment loan, and to execute definitive documentation, in the next few days.
The total costs and expenses relating to these transactions are expected to be
approximately $1.3 million.
John Raos, President and CEO stated, "The new equity infusion, together with the
new six-year term equipment loan from GECC, provides us with a stronger balance
sheet and will enable us to better meet the future needs of our growing customer
base."
Precision Partners, Inc. is a leading supplier of precision manufactured metal
parts, tooling and assemblies for original equipment manufacturers ("OEM's").
Our broad manufacturing capabilities and highly engineered processes allow us to
meet the critical specifications of our customers across a wide range of
industries. We have earned "Preferred or "Qualified" supplier status with most
of our customers and are predominately the sole-source supplier to our customers
of the parts we manufacture.
THIS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES AND A NUMBER OF
FACTORS, MANY OF WHICH MAY BE BEYOND PRECISION'S CONTROL, COULD ADVERSELY AFFECT
PRECISION'S ABILITY TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED IN THE TIMEFRAME
OR ON THE TERMS CONTEMPLATED BY THIS PRESS RELEASE. CERTAIN OF THESE RISKS ARE
DESCRIBED IN THE COMPANY'S FORM 10-Q FOR THE SECOND QUARTER OF 2000. COPIES OF
THIS REPORT MAY BE OBTAINED VIA THE WORLD WIDE WEB AT
WWW.PRECISIONPARTNERSINC.COM.
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