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EXHIBIT 99.1
THOMASTON MILLS COMPLETES LOAN WITH HELP OF GEORGIA LAWMAKERS, USDA
THOMASTON, Ga., June 6 /PRNewswire/ -- Thomaston Mills, Inc.'s (Nasdaq: TMSTA -
news) President and CEO Neil H. Hightower today announced that Thomaston Mills,
Inc. has completed a $10,000,000 twenty-year loan with WebBank to replace a
portion of its high interest rate real estate debt. Two Georgia lawmakers and
the U. S. Department of Agriculture (USDA) assisted the Company in obtaining the
new loan, which was 90% guaranteed by the USDA's Business and Industry Program
and the North American Development Bank's Community Adjustment and Investment
Program (CAIP).
U. S. Representative Saxy Chambliss (R-Georgia), who represents Thomaston in
Georgia's Eighth Congressional District, and U. S. Senator Paul Coverdell
(R-Georgia) worked closely with the Company in providing much-needed assistance
and in making sure the application was processed in a timely manner once it
reached Washington, DC.
"We wanted to make sure that this important project didn't get bogged down in
bureaucracy and red-tape through the process," said Chambliss. "We were simply
doing our job for the fine folks at Thomaston Mills, to ensure that this loan
happened in a swift and timely manner."
Senator Coverdell said, "Thomaston Mills is vitally important to this community.
This loan has provided a lifeline to Thomaston by preserving 1,600 jobs. The
textile industry is an important economic engine to Georgia, and we intend to
continue efforts to help these communities."
Hightower expressed his thanks to Chambliss and Coverdell for their assistance
during the process, as well as staff specialists in USDA's Macon office and
executives in the state office in Athens for their assistance and encouragement
during the application process. Marsha Deane, with Deane Financial of Quincy,
FL, served as the Company's investment banker for the transaction and assisted
in the CAIP certification process. Deane Financial specializes in USDA Business
and Industry Loans.
Thomaston Mills reported an operating profit for the nine months ending March
2000 of $1,239,000 on sales of $123,607,000 as compared to an operating loss of
$8,093,000 on sales of $129,018,000 in the previous year. The company had a net
loss for the nine months period of $5,667,000 compared to a net loss of
$14,913,000 the previous year resulting in an income improvement of $9,246,000.
CAIP was authorized by Congress to assist communities adversely impacted by the
North American Free Trade Agreement (NAFTA), with loan guaranties to enhance job
creation and preservation. The Company's work, with the assistance of Chambliss
and Coverdell's offices, to certify Upson County for CAIP designation enabled
employees released in Thomaston's plant closings last year to receive additional
unemployment and job training assistance under NAFTA Trade Adjustment Assistance
Program.
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Thomaston Mills celebrated its 100th year of operations last December. As Upson
County's largest employer, it currently employs 1,650 people. The Company exited
last year from denim fabric and sales yarn, concentrating the remaining
production facilities in the piece dyed fabrics business and the home fashions
sector, specifically comforters and sheeting. The capital intensive nature of
the home fashion sector and "just-in-time" stock replenishment ordering by the
large retailers serves as a barrier to entry to foreign competitors in the
opinion of most economists. Thomaston spent over $1,000,000 last year to enhance
its Supply Management System in order to maximize its responsiveness to its
customers and allow the Company to respond to changing conditions more quickly.
This led directly to an opportunity to increase its sales to retail and
institutional global business.
Certain of the above statements contained herein constitute forward- looking
statements within the meaning of the Private Securities Litigation Reform Act of
1996. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements express or implied by such forward-looking
statements. Such factors include, among other things, business conditions,
volatility of commodities markets, ability to control operating costs,
developing successful new products and maintaining effective pricing and
promotions of its products.
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