UTICA, N.Y., Aug. 29 /PRNewswire-FirstCall/ --
CONMED Corporation (Nasdaq: CNMD) today announced that it has closed on a new
$200 million senior credit facility. The new credit agreement consists of a
$100 million revolving credit arrangement and a $100 million term loan. The
agreement calls for both components to extend for approximately five years.
The term loan may be extended an additional two years upon the satisfaction of
certain events.
The proceeds of the term loan and $10 million of the revolver were used to
pay-off the Company's current senior indebtedness. The remainder of the
revolving credit facility is unused at this point. Interest rates on the new
loans are Libor plus 250 basis points for the revolver and Libor plus 275
basis points for the term loan.
Mr. Joseph J. Corasanti, President and COO, said, "I am very pleased that
we have finalized our new senior credit agreement as it will support our
business over the next several years."
As anticipated, the Company will write-off as an extraordinary charge in
the third quarter of 2002 the remainder of the deferred financing fees
associated with the old facility, amounting to approximately $1 million, net
of tax. The Company's earnings per share guidance of $.30 -- $.34 per diluted
share for the third quarter 2002 is before this extraordinary charge.
CONMED is a medical technology company specializing in instruments,
implants, and video equipment for arthroscopic sports medicine, and powered
surgical instruments, such as drills and saws, for orthopedic, ENT,
neuro-surgery, and other surgical specialties. The Company is also a leading
developer, manufacturer and supplier of RF electrosurgery systems used
routinely to cut and cauterize tissue in nearly all types of surgical
procedures worldwide, and endoscopy products such as trocars, clip appliers,
scissors, and surgical staplers. The Company also manufactures and sells a
full line of ECG electrodes for heart monitoring and other patient care
products. Headquartered in Utica, New York, the Company's 2,500 employees
distribute its products worldwide from eight manufacturing locations.
This press release contains forward-looking statements based on certain
assumptions and contingencies that involve risks and uncertainties. The
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and relate to the
Company's performance on a going-forward basis. The forward-looking
statements in this press release involve risks and uncertainties which could
cause actual results, performance or trends, including the above mentioned
anticipated earnings, to differ materially from those expressed in the
forward-looking statements herein or in previous disclosures. The Company
believes that all forward-looking statements made by it have a reasonable
basis, but there can be no assurance that management's expectations, beliefs
or projections as expressed in the forward-looking statements will actually
occur or prove to be correct. In addition to general industry and economic
conditions, factors that could cause actual results to differ materially from
those discussed in the forward-looking statements in this press release
include, but are not limited to: (i) the failure of any one or more of the
assumptions stated above, to prove to be correct; (ii) the risks relating to
forward-looking statements discussed in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2001 and the Prospectus dated May
22, 2002; (iii) cyclical purchasing patterns from customers, end-users and
dealers; (iv) timely release of new products, and acceptance of such new
products by the market; (v) the introduction of new products by competitors
and other competitive responses; (vi) the possibility that any new acquisition
or other transaction may require the Company to reconsider its financial
assumptions and goals/targets; and/or (vii) the Company's ability to devise
and execute strategies to respond to market conditions.
SOURCE CONMED Corporation
 back to top
Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html
CONTACT:
Robert Shallish, Chief Financial Officer of
CONMED Corporation, +1-315-624-3206; or Investors, Lauren Levine,
or Lanie Fladell; or Media, Dan Budwick, all of Morgen-Walke
Associates, +1-212-850-5600, for CONMED Corporation
|
