MANITOWOC, Wis.--(BUSINESS WIRE)--
The Manitowoc Company, Inc. (NYSE:MTW) today announced the closing of
its new senior secured credit facilities in the aggregate amount of
$1.05 billion. The refinancing includes a revolving facility of $500
million with a term of five years, a Term Loan "A" facility of $350
million with a term of five years, and a Term Loan "B" facility of $200
million with a term of seven years.
This new credit facility extends the maturity dates of the company's
revolving credit facility and term loans from 2016 and 2017 to 2018 and
2020, respectively. The spread over the applicable LIBOR rate paid under
the new revolving and Term Loan "A" facilities at the close declined 75
basis points to 2.25 percent, or alternatively, to 1.25 percent in
excess of an alternate base rate, at the company's option.
The refinancing will also enable the company to redeem its 9.5% Senior
Notes due 2018 when they reach the conclusion of their non-call period
in February 2014. In combination, the new credit facility and lower
interest expense from the bond redemption should result in interest
savings of approximately $20 million in 2014.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry,
capital goods manufacturer with over 115 manufacturing, distribution,
and service facilities in 26 countries. The company is recognized
globally as one of the premier innovators and providers of crawler
cranes, tower cranes, and mobile cranes for the heavy construction
industry, which are complemented by a slate of industry-leading product
support services. In addition, Manitowoc is one of the world's leading
innovators and manufacturers of commercial foodservice equipment, which
includes 24 market-leading brands of hot- and cold-focused equipment. In
2012, Manitowoc's revenues totaled $3.9 billion, with more than half of
these revenues generated outside of the United States.
This press release includes "forward-looking statements" intended to
qualify for the safe harbor from liability under the Private Securities
Litigation Reform Act of 1995. Any statements contained in this press
release that are not historical facts are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current expectations of the
management of the company and are subject to uncertainty and changes in
circumstances. Forward-looking statements include, without limitation,
statements typically containing words such as "intends," "expects,"
"anticipates," "targets," "estimates," and words of similar import. By
their nature, forward-looking statements are not guarantees of future
performance or results and involve risks and uncertainties because they
relate to events and depend on circumstances that will occur in the
future. There are a number of factors that could cause actual results
and developments to differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual results
and developments to differ materially include, among others:
- unanticipated problems with redeeming Manitowoc's 9.50% senior
notes due 2018;
- unanticipated changes in capital and financial markets;
- unanticipated changes in revenues, margins, costs, and capital
- the ability to generate cash and manage working capital consistent
with Manitowoc's stated goals;
- pressure of financing leverage;
- changes in economic or industry conditions generally or in the
markets served by Manitowoc; and
- risks and other factors cited in Manitowoc's filings with the
United States Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements only speak as of
the date on which they are made. Information on the potential factors
that could affect the company's actual results of operations is included
in its filings with the Securities and Exchange Commission, including
but not limited to its Annual Report on Form 10-K for the fiscal year
ended December 31, 2012.
Source: The Manitowoc Company, Inc.