Bell Microproducts Completes Agreements With All Lenders to Extend Credit Facilities to 2010 and Beyond |
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By: Bell Microproducts Inc. Posted: 2008-10-15 19:18:31 |
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Bell Microproducts Inc. (Pink Sheets: BELM) today confirmed that it has completed agreements with its major lending groups to expand the terms of its three key credit facilities. The Company's financing agreement with its European bank group led by Bank of America, NA provides up to 75 million pounds Sterling in revolving credit through October 2011. The Company's primary lending facility in the Americas, which was expanded last month, provides up to $204 million through September 2010. In August, the Company announced that it had restructured a portion of its existing term debt held by the Retirement Systems of Alabama totaling approximately $57 million, extending the payment schedule through December 2013.
"With the completion of these three credit facility agreements, we have concluded our near term financing objectives," said W. Donald Bell, President and Chief Executive Officer of Bell Microproducts. "While we expect to see some slowdown in sales due to the current economic environment, we are well positioned to navigate through the economic challenges that all businesses currently face. We appreciate the continued support and confidence of our lenders." About Bell Microproducts Bell Microproducts (OTC: BELM.PK) is an international, value-added distributor of a wide range of high-tech products, solutions and services, including storage systems, servers, software, computer components and peripherals, as well as maintenance and professional services. An industry-recognized specialist in storage products, the company is one of the world's largest storage-centric value-added distributors. Bell Microproducts is uniquely qualified with deep technical and application expertise to service a broad range of information technology needs. From design to deployment, its products are available at any level of integration, from components to subsystem assemblies and fully-integrated, tested and certified system solutions. More information can be found in the company's SEC filings, or by visiting the Bell Microproducts Web site at http://www.bellmicro.com. Safe Harbor Statement This release contains forward-looking statements that are based on the current opinions and estimates of management, and speak only as of the date on which they are made. Such forward-looking statements include, but are not limited to, the accessibility to the borrowing availability under each of the revolving lines of credit, the conclusion of the Company's near term financing objectives, management's expectation that there will be a slowdown in sales due to the current economic environment, and management's belief that the Company is well positioned to navigate through the economic challenges that all businesses currently face. Actual results could differ materially from such statements as a result of many risks and uncertainties, including: global economic and credit conditions may worsen and/or exist for a period of time longer than currently anticipated; the Company's assets which determine the amount of the availability under the credit facilities may decrease thereby decreasing the borrowing availability; the Company may be unable to comply with the terms and conditions set forth in the lending agreements; if economic conditions deteriorate beyond management's expectations it may necessitate the Company seeking additional short-term and/or long-term financing; the slowdown in sales anticipated by management may be greater than currently anticipated; a slowdown in sales may occur for reasons other than the current economic environment; the economic challenges faced by the Company may be more severe than that faced by other businesses generally; the Company may be unable to deliver its consolidated audited financial statements by the dates required by the lenders and be unable to secure additional waivers; the activities necessary to complete the restatement could divert significant management time and attention away from the operations of the Company; and the costs to be incurred by the Company for extraordinary legal, accounting, and other professional fees related to the restatement may be significant. Investors should also take into account the risks described in the Company's periodic reports filed with the Securities and Exchange Commission when making investment decisions. Investors are cautioned not to place undue reliance on these forward-looking statements, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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