Collins & Aikman (NYSE:CKC)
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Collins & Aikman Announces New $75 Million Term Loan Facility
TROY, Mich., April 4 /PRNewswire-FirstCall/ -- Collins & Aikman Corporation
(NYSE:CKC) announced today that it had arranged for an additional $75 million
in committed term loan financing under its existing senior secured credit
facilities. The funds will be used for capital expenditures or to replenish
funds used for capital expenditures. It is expected that the term loan funding
will occur within a week in connection with and subject to receipt of senior
lender approvals of certain credit facility amendments. Those amendments will
modify certain financial covenants and pricing terms. The Company's available
liquidity (cash and unutilized commitments under revolving credit and account
receivables facilities) was approximately $81 million at March 31, 2005 as
compared with approximately $86 million at December 31, 2004. Continued access
to credit facilities in satisfactory amounts is essential to the Company. As
of March 31, 2005, the Company's outstanding debt balance was approximately
$1,708 million. Credit Suisse First Boston has committed to provide this $75
million term loan financing. There is no assurance that the term loan facility
will be completed.
About Collins & Aikman Corporation
Collins & Aikman Corporation, a Fortune 500 company, is a global leader in
cockpit modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based trim, and
convertible top systems. Headquartered in Troy, Michigan, we have a workforce
of approximately 23,000 and a network of more than 100 technical centers, sales
offices and manufacturing sites in 17 countries throughout the world.
Information about Collins & Aikman is available on the Internet at
http://www.collinsaikman.com/ .
Cautionary Statement Concerning Forward-Looking Information
The foregoing reflects the Company's views about the accounting investigation,
its financial condition, performance and other matters that constitute
"forward-looking" statements, as that term is defined by the federal securities
laws. You can find many of these statements by looking for words such as
"may," "will," "expect," "anticipate," "believe," "estimate," "should,"
"continue," "predict," "preliminary" and similar words used herein. These
forward-looking statements are intended to be subject to the safe harbor
protection provided by the federal securities laws. These forward-looking
statements are subject to numerous assumptions, risks and uncertainties.
Because the statements are subject to risks and uncertainties, actual
developments and results may differ materially from those expressed or implied
by the forward-looking statements. Readers are cautioned not to place undue
reliance on the statements, which speak only as of the date hereof.
Various factors that may affect actual outcomes and performance and results
include, but are not limited to, general economic conditions in the markets in
which the Company operates, declines in North American, South American and
European automobile and light truck builds; labor costs and strikes at the
Company's major customers and at the Company's facilities; fluctuations in the
production of vehicles for which we are a supplier; changes in the popularity
of particular car models, particular interior trim packages or the loss of
programs on particular vehicle models; dependence on significant automotive
customers; the level of competition in the automotive supply industry and
pricing pressure from automotive customers; risks associated with conducting
business in foreign countries; and fluctuation in the price of certain raw
materials, including resins and other petroleum-based products. In addition,
the following may have a material impact on actual outcomes and performance and
results: the results of the pending investigation; the Company's ability to
maintain satisfactory relations with its sources of liquidity, suppliers,
customers and creditors; the Company's high leverage and ability to service its
debt; and the impact of any defaults under its material agreements and debt
instruments.
The cautionary statements set forth above should be considered in connection
with any subsequent written or oral forward-looking statements that the Company
or persons acting on its behalf may issue. The Company does not undertake any
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date of this report or to reflect the
occurrence of unanticipated events.
DATASOURCE: Collins & Aikman Corporation
CONTACT: Bryce Koth, Chief Financial Officer, +1-248-824-1520,
, or David A. Youngman, Director of Corporate
Communications, +1-248-733-4355, , both of Collins &
Aikman Corporation
Web site: http://www.collinsaikman.com/