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FOR: TRANSPRO, INC.
CONTACT: Timothy E. Coyne
Vice President - Finance
(203) 401-6452
FOR IMMEDIATE RELEASE
Morgen-Walke Associates
Investor contact: Gordon McCoun/Jeffrey Zack
Media contact: Steve DiMattia
(212) 850-5600
TRANSPRO, INC. ENTERS INTO $65 MILLION LOAN AGREEMENT
New Haven, Connecticut, January 10, 2001 - TransPro, Inc. (NYSE: TPR)
today announced that it has entered into a $65 million Loan and Security
Agreement (the "Loan Agreement") with Congress Financial Corporation (New
England), an affiliate of First Union National Bank. The Loan Agreement replaces
the Company's previous $52 million revolving credit arrangement with five
banking institutions.
The Loan Agreement provides for secured borrowings or the issuance of
letters of credit in an aggregate amount not to exceed $65 million and is
comprised of a $60 million Revolving Credit Facility and up to a $5 million Term
Loan. The initial term of the Loan Agreement expires on January 5, 2004, with
annual extensions thereafter.
Barry Banducci, Chairman of the Board of Directors, commented, "We are
pleased to have concluded the refinancing of TransPro in a timely and effective
manner. This expanded credit facility will provide the flexibility needed to
strengthen our position in our served markets, while capitalizing on selective
growth initiatives such as the automotive air conditioning parts Aftermarket."
The Loan Agreement is secured by a blanket first perfected security
interest in substantially all of the Company's assets plus a pledge of the stock
of the Company's subsidiaries. Available borrowings under the Revolving Credit
Facility are determined by a borrowing base consisting of the Company's eligible
accounts receivable and inventory, as adjusted by an advance rate. The Term Loan
is payable in 59 consecutive equal monthly installments commencing February 1,
2001, with a balloon payment equal to the unpaid balance of the Term Loan due at
the end of the initial term.
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TRANSPRO ENTERS INTO $65 MILLION CREDIT AGREEMENT PAGE 2
Amounts borrowed under the Loan Agreement bear interest at variable
rates based, at the Company's option, on either the Eurodollar rate plus a
margin of 2.0 %, 2.25% or 2.50% depending on the Company's pretax profit
performance, or the First Union National Bank base lending rate. The Loan
Agreement requires the maintenance of $74 million of working capital and $67.5
million of net worth.
TransPro, Inc. is a manufacturer and supplier of heating and cooling
systems and components for a variety of Aftermarket and OEM automotive, truck
and industrial applications.
FORWARD-LOOKING STATEMENTS
Statements included in this news release which are not historical in nature are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The Company's Annual Report on
Form 10-K contains certain detailed factors that could cause the Company's
actual results to materially differ from forward-looking statements made by the
Company. In particular, statements relating to the future financial performance
of the Company are subject to business conditions and growth in the general
economy and automotive and truck business, the impact of competitive products
and pricing, changes in customer product mix, failure to obtain new customers or
retain old customers or changes in the financial stability of customers, changes
in the cost of raw materials, components or finished products and changes in
interest rates.
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