ANDERSON, Ind., Feb. 9 /PRNewswire/ -- Remy International, Inc. ("Remy
International" or the "Company"), announced the closing of the sale of its
light and medium truck diesel engine and component remanufacturing business
(the "Business") conducted by Franklin Power Products, Inc. and
International Fuel Systems, Inc. to Caterpillar Inc. Total cash proceeds
were $153.2 million, including $3.2 million of an estimated post-closing
purchase price adjustment. The Company does not anticipate the purchase
price will change materially when final post-closing adjustments are
determined.
"We are pleased that we were able to complete the sale of these
non-core businesses," said John Weber, President and Chief Executive
Officer. "Available proceeds from the sale were used to reduce our debt
burden while the Company continues to focus on improving margins of its
core businesses and to delever its balance sheet."
As previously announced, the Company amended its senior secured
revolving credit and term loan facility (the "Senior Credit Facility") to
effectuate the sale. Under the terms of the amendment, the first $50
million of proceeds from the transaction have been deposited in a
restricted account, pledged as collateral to the Company's lenders under
the Senior Credit Facility and available for withdrawal only with the
required consent of senior lenders. $7.8 million of the proceeds were
retained by the Company to pay certain expenses related to the transaction
and make a required distribution of available cash to a joint venture
partner of the Business. The remaining $95.4 million was used to repay
outstanding revolver borrowings under the Senior Credit Facility. As also
announced previously, the revolving portion of the senior credit facility
was permanently reduced by $40 million, from $160 million to $120 million.
The Company estimates its liquidity to be $98.2 million, consisting of
unrestricted cash and cash equivalents of $22.7 million and permitted
availability under the Company's revolving credit facility of approximately
$75.5 million as of the closing date and after application of sale proceeds
described above.
Rothschild Inc. is assisting the Company in exploring strategic
alternatives to delever its balance sheet and enhance its liquidity
position, which continues to be affected by debt service and other
requirements and automotive industry pressures.
About Remy International, Inc.:
Remy International, Inc., headquartered in Anderson, Indiana, is a
leading manufacturer, remanufacturer and distributor of Delco Remy brand
heavy-duty systems and Remy brand starters and alternators, diesel engines,
locomotive products and hybrid power technology. The Company also provides
a worldwide components core-exchange service for automobiles, light trucks,
medium and heavy-duty trucks and other heavy-duty, off-road and industrial
applications.
Caution Regarding Forward-Looking Statements:
The Company cautions readers that any such forward-looking statements
are based on current assumptions and expectations which are inherently
uncertain, are subject to risks and should be viewed with caution. Actual
results and experience may differ materially from the forward-looking
statements as a result of many factors including, but not limited to: risks
associated with the uncertainty of future financial results and liquidity
including borrowing availability under the Company's credit facilities (to
the extent permitted by the Company's indentures), access to accounts
receivable sale programs, or otherwise; availability of financing and our
ability to generate positive cash flow for debt service, working capital,
capital expenditures, operating expenditures or other general corporate
purposes; restructuring and other risks with respect to dispositions and
acquisition of assets, including integration costs and benefits and
indemnification claims; general conditions in the automotive industry and
the markets for our products; reduced purchases of our products by our
customers and our ability to attract new customers or retain existing
customers; our ability to achieve sufficient cost reductions to remain
competitive; reduced demand for our customers' products or volume
reductions; our ability, our suppliers' ability, our customers' ability and
their suppliers' ability to maintain satisfactory labor relations and avoid
work stoppages; additional restructuring actions that may occur including
both costs and benefits; supply shortages or price fluctuations in raw
materials, goods purchased for resale, utilities or other operating
supplies; customs duty claims and foreign currency fluctuations; our
ability to develop and produce new products that reflect market demand; our
ability to respond to changes in technology or increased competition;
adverse changes in laws or governmental regulations affecting our operating
expenses, market conditions or demand for our products or our customers'
products; adverse changes in the economic conditions or political stability
of our principal markets; liabilities arising from warranty claims or legal
proceedings to which we are or may become a party or claims against us or
our products; risks of noncompliance with environmental regulations or
risks of environmental issues that could result in unforeseen costs at our
facilities; our ability to attract and retain key employees; changes in
laws, governmental regulations or markets for investments affecting pension
plan contributions; and other unanticipated events and conditions that may
hinder our ability to compete. For additional discussion, see "Item 1A.
Risk Factors" in our most recent annual report on Form 10-K and the
Company's other filings with the SEC.
Remy International Website: http://www.remyinc.com
SOURCE Remy International, Inc.
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Related links:
http://www.remyinc.com
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CONTACT:
Leah Campbell, Corporate Communications of
Remy International, Inc., +1-765-621-3797, or
Campbell.leah@remyinc.com
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