Exhibit 99.1
CONTACT: Eli Sayegh
Director of Investor Relations of
Bell Microproducts, Inc.
408-451-1685, or
[email protected]
Bell Microproducts Announces $180 Million Subordinated Debt Financing With the
Retirement Systems of Alabama
SAN JOSE, Calif., July 6/PRNewswire/ -- Bell Microproducts, Inc. (Nasdaq: BELM,
news, msgs), a leading value-added supplier of storage, semiconductor and
computer products and services, today announced the completion of a $180 million
Subordinated Debt Financing with the Retirement System of Alabama (RSA).
The RSA financing consists of a 10-year, long-term, $100 million note, and a
1-year, short-term, $80 million note. The financing is subordinated to the
Company's bank debt. In conjunction with the RSA financing, the RSA obtained a
warrant to purchase 500,000 shares of Bell Microproducts' common stock.
The purpose of the $180 million Subordinated Financing is to reposition Bell
Microproducts' domestic and international commercial banking and debt structure.
The Company also plans to use the funds for working capital purposes, to fund
future acquisitions, to reduce bank debt and to open a Corporate Technology
Center in Montgomery, Alabama.
"Bell Microproducts' revenues have grown at a compound annual rate of over 35%
for the past five years. The company has emerged as a leading force in the
storage products market. Revenues grew 84% to over $1 billion in 1999, and
including the pending acquisition of UK-based Ideal Hardware, are expected to
approach $2 billion in 2000." stated Donald Bell, president and CEO of Bell
Microproducts. "The strong growth of the Internet and related computer products
has created increased demand for our storage and semiconductor products. With
our geographic expansion throughout the Americas and in Europe, and with our
strategic thrust into storage systems, we believe Bell Microproducts is
positioned for continued advancement in the industry. With the RSA financing, we
will be able to capitalize on the exciting growth opportunities ahead. We are
pleased with the establishment of the new relationship with RSA and we are proud
of RSA's confidence in our Company."
About The Retirement Systems of Alabama
The Retirement Systems of Alabama (RSA) is a pension fund with average assets of
$26 billion. The mission of RSA is to serve the interests of its members by
preserving the benefits and soundness of the Systems at the least expense to the
state of Alabama and all Alabama taxpayers.
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About Bell Microproducts
Bell Microproducts is a value added provider of a wide range of high technology
products, solutions, and services to the industrial and commercial marketplace.
The company's offering includes semiconductors, computer platforms, peripherals,
and storage products of various types including desktop, high-end computer and
storage subsystems, fibre channel connectivity products, RAID, NAS and SAN
storage systems and back-up products. Bell Microproducts is an
industry-recognized specialist in storage products and is one of the world's
largest storage-centric value-added distributors.
The Company's products are available at any level of integration from
components, to subsystem assemblies, to fully integrated, tested and certified
system solutions. The Company adds value with a broad range of services
including testing, software loading, kitting, mass storage system integration,
and computer system integration. Trained and certified technical personnel
complete each of these processes at Bell Microproducts' ISO 9002 facilities.
Bell Microproducts markets and distributes more than 100 brand name product
lines, as well as its own BellStor storage and Trademark(R) computer brands, to
original equipment manufacturers (OEMs), contract electronic manufacturing
services (EMS) customers, value-added resellers (VARs) and system integrators in
the Americas and Europe. More information can be found in SEC filings, or by
visiting the Bell Microproducts Web site at www.bellmicro.com.
Safe Harbor Statement. This release may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, which reflect the Company's current views of future
events and financial performance, involve known and unknown risks and
uncertainties which could cause actual results or facts to differ materially
from such statements for a variety of reasons including, but not limited to:
industry conditions, changes in product supply, pricing, and customer demand,
competition, other vagaries in the computer and electronic components markets,
changes in relationships with key suppliers, ability to complete the acquisition
of Ideal Hardware, ability to successfully integrate the operations of Ideal and
other recently acquired businesses and the other risks and information described
from time to time in the company's reports to the Securities and Exchange
Commission (including the company's Annual Report on Form 10-K and Current
Reports on form 8-K regarding this and other transactions). Investors should
take such risks into account when making investment decisions. Shareholders and
other readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. The company
undertakes no obligation to update publicly or revise any forward-looking
statements.
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