Riviera Tool (AMEX:RTC)
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Riviera Tool Company Receives New Financing Commitment
GRAND RAPIDS, Mich., May 27 /PRNewswire-FirstCall/ -- Riviera Tool Company
(AMEX:RTC) today announced that it has received a commitment from its primary
lender to increase its existing credit facility. The Company received a
commitment to increase its Revolving Line of Credit from $10.0 million to $12.5
million, including an increase in work-in-process advance rates and capacity
and an additional $500,000 Equipment Line of Credit. Upon close, the facility
will mature December 1, 2006.
The Company anticipates utilizing the Equipment Line of Credit for its
continued investment efforts in the latest technology as a part of its growth
and cost improvement initiatives. New equipment includes laser cutting
machines and high-speed component machining centers.
"We are extremely pleased to be able to secure this credit facility, and
appreciate the confidence in our business demonstrated by our primary lender,
Comerica Bank," said Kenneth K. Rieth, president and chief executive officer of
Riviera Tool. "This facility will provide us the financial flexibility
necessary to handle anticipated new large domestic and international orders
including project management, while also reducing our capital costs
approximately $200,000 per year."
The Company anticipates closing the financing within the next 30 days.
About Riviera Tool Company
Riviera Tool Co. (http://www.rivieratool.com/ ) designs, develops and
manufacturers large-scale, custom metal stamping die systems used in the high-
speed production of sheet metal parts and assemblies for the global automotive
industry. A majority of Riviera's sales are to DaimlerChrysler, BMW, General
Motors, Ford Motor Co. and their Tier One suppliers.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities law. These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological.
DATASOURCE: Riviera Tool Company
CONTACT: Kenneth K. Rieth, CEO or Peter Canepa, CFO, of Riviera Tool
Co., +1-616-698-2100; or Jeff Lambert or Ryan McGrath of Lambert, Edwards &
Associates, +1-616-233-0500, for Riviera Tool Company
Web site: http://www.rivieratool.com/