Wolverine Tube (NYSE:WLV)
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Wolverine Tube, Inc. Extends and Amends Credit Facility
HUNTSVILLE, Ala., April 6 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc.
announced today that it has extended its $37.5 million Secured Revolving Credit
Facility (the Facility) for two years and has amended certain financial
covenants. The Facility, as amended, matures on March 31, 2007 versus a
previous 2005 maturity. Amended financial covenants pertain to minimum earnings
before interest, taxes, depreciation and amortization (EBITDA), fixed charge
coverage ratio and annual capital expenditures have been modified.
Specifically, amended financial covenants are as follows. Minimum EBITDA for the
trailing twelve months for the first, second, third and fourth quarters of 2004
are $23.0 million, $23.5 million, $29.5 million and $36.0 million, respectively.
For the trailing twelve-month periods thereafter minimum EBITDA is $40.0
million. The fixed charge coverage ratio ranges from .05x1 to 1.05x1 during the
term of the Facility. Annual capital spending limits are $15.0 million, $20.0
million, $22.0 million and $25.0 million for the years 2004-2007, respectively.
Commenting, James E. Deason, Executive Vice President and Chief Financial
Officer, stated, "We are pleased to have completed this amendment and extension
to our Secured Revolving Credit Facility. The Facility, as amended, provides
the Company with favorable terms and conditions. The availability of the
Facility along with our cash flow from operations continues to provide the
Company with the financial liquidity needed as we continue to experience
improvement in our business."
About Wolverine Tube, Inc.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers
with copper and copper alloy tube, fabricated products, metal joining products
as well as copper and copper alloy rod, bar and other products. Internet
addresses: http://www.wlv.com/ and http://www.silvaloy.com/ .
Forward-looking statements in this press release are made pursuant to the "Safe
Harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements use such words as "may", "will", "expect",
"believe", "plan", "anticipate" and other similar terminologies. This press
release contains forward-looking statements regarding factors affecting the
Company's expectations of future sales, earnings and cash flows. Such statements
are based on current expectations, estimates and projections about the industry
and markets inwhich the Company operates, as well as management's beliefs and
assumptions and information currently available. These forward-looking
statements are subject to various risks and uncertainties that could cause
actual results to differ materially from those stated or implied by such
forward-looking statements. The Company undertakes no obligation to publicly
release any revision of any forward-looking statements contained herein to
reflect events or circumstances occurring after the date hereof or toreflect
the occurrence of unanticipated events. With respect to expectations of future
sales, earnings and cash flows, factors that could affect actual results
include, without limitation, the effect of currency fluctuations, raw material
costs and our ability to effectively hedge these cost, the timing and magnitude
of recovery from the current economic downturn, costs and cost savings related
to the Booneville closing, the levels of U.S. commercial construction activity,
competitive products and pricing, environmental contingencies, regulatory
pressures, labor cost (including healthcare and pension expense), technology,
fuel and energy costs, the mix of geographic and product revenues, and any
inability to achieve or delays in achieving anticipated results from our cost
reduction initiatives (including our workforce reduction program), product and
process development activities, productivity and efficiency initiatives, global
expansion activities, market share penetration effort and working capital
management programs. A discussion of risks and uncertainties, which could cause
actual results to differ from those contained in the forward-looking statements,
can be found in the Company's Annual Report on Form 10-K for the most recently
ended fiscal year and reports filed from time to time with the Securities and
Exchange Commission.
Contact: James E. Deason
Executive Vice President
Chief Financial Officer
(256) 580-3510
DATASOURCE: Wolverine Tube, Inc.
CONTACT: James E. Deason, Executive Vice President, Chief Financial
Officer of Wolverine Tube, Inc., +1-256-580-3510
Web site: http://www.wlv.com/
http://www.silvaloy.com/