CLEVELAND, Nov. 1 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)
announced today that it has completed two financing transactions to replace
its existing debt instruments.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
In the first transaction, Hawk completed its previously disclosed private
offering of $110.0 million 8-3/4% Senior Notes due 2014. The Notes represent
senior unsecured obligations of Hawk and are guaranteed by Hawk's domestic
subsidiaries. Interest is payable semi-annually and the Notes mature in
November 2014.
Concurrently with the completion of the Notes offering, Hawk closed a new
five year, senior secured credit facility with KeyBank National Association.
The new bank facility has a maximum revolving credit commitment of
$30.0 million.
Hawk will use the initial borrowings under its new bank facility along
with proceeds of the Notes to refinance all of its outstanding 12% Senior
Notes due 2006, to repay loans under its previous bank facility and to pay
fees and expenses related to these transactions. Hawk will use its new bank
facility to finance its ongoing working capital requirements and for general
corporate purposes.
"We are pleased to have extended the maturity of our high yield bonds to
ten years with a very attractive fixed interest rate and covenant terms,"
stated Joseph J. Levanduski, the Vice President - CFO of Hawk. "This,
combined with our new bank facility, will provide Hawk with ample liquidity
and flexibility to continue its long-term growth initiatives."
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered
products. Its friction products group is a leading supplier of friction
materials for brakes, clutches and transmissions used in airplanes, trucks,
construction equipment, farm equipment and recreational and performance
automotive vehicles. Through its precision components group, Hawk is a
leading supplier of powder metal and metal injected molded components used in
industrial, consumer and other applications, such as pumps, motors and
transmissions, lawn and garden equipment, appliances, small hand tools, trucks
and telecommunications equipment. Hawk's performance racing group
manufactures clutches and gearboxes for motorsport applications and
performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,600 employees and 16 manufacturing, research and
administrative sites in five countries at its continuing operations.
Forward-Looking Statements
This press release may include forward-looking statements. Forward-
looking statements are necessarily subject to risks, uncertainties and other
factors, many of which are outside the control of Hawk that could cause actual
results to differ materially from such statements. As noted, actual results
and events may differ significantly from those projected in the forward-
looking statements. Reference is made to Hawk's filings with the Securities
and Exchange Commission, including its annual report on Form 10-K for the year
ended December 31, 2003, its quarterly reports on Form 10-Q, and other
periodic filings, for a description of the foregoing and other factors that
could cause actual results to differ materially from those in the forward-
looking statements. Any forward-looking statement speaks only as of the date
that such statement is made, and Hawk undertakes no obligation to update any
forward-looking statement, whether as a result of new information, future
events or otherwise.
Hawk Corporation is online at: http://www.hawkcorp.com
SOURCE Hawk Corporation
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Related links:
http://www.hawkcorp.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Ronald E. Weinberg, Chairman, CEO and
President, or Thomas A. Gilbride, Vice President - Finance of
Hawk Corporation, +1-216-861-3553
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