BRISTOL, Conn.--(BUSINESS WIRE)--Jan. 13, 2006--Barnes Group Inc.
(NYSE: B) today announced that it has completed a restructuring of its
international operations, finalized an Amended and Restated Credit
Facility Agreement, and amended terms of its domestic senior note
agreements.
The restructuring of the Company provides a number of key features
including: reduction of refinancing risk, increased financial
flexibility, reduced borrowing costs, and the ability of U.S. bank
lenders to participate directly in the global expansion of the
Company. It also facilitates the Company's ability to efficiently
expand its global operations.
"The completed restructuring is essential for our continued global
expansion," said William C. Denninger, Senior Vice President and Chief
Financial Officer. "The new structure provides rapid financing through
efficient deployment of cash to support global operations. These
changes provide the necessary financial flexibility to improve the
strength of our balance sheet, utilize cash where it is needed, and
will enable us to continue to generate balanced and sustainable
profitable growth," continued Denninger.
The Amended and Restated Senior Credit Facility Agreement extends
the maturity of the Company's revolving credit facility by 19 months
to January 11, 2011, reduces the loan spread on its LIBOR-based
borrowings by 0.25%, increases the Company's permitted total debt from
3.25 times EBITDA to 4.00 times EBITDA, and permits the Company's new
international Swiss holding company, Barnes Group Switzerland GmbH, to
borrow directly under the facility. Lenders in the new revolving
credit facility have also entered into an inter-creditor agreement
with the domestic holders of the Company's senior notes.
In addition, amendments to the Company's domestic senior note
agreements have eliminated restrictions on borrowings of foreign
subsidiaries whose lenders are parties to the inter-creditor
agreement.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified
international manufacturer of precision metal components and
assemblies and a distributor of industrial supplies, serving a wide
range of markets and customers. Founded in 1857 and headquartered in
Bristol, Connecticut, Barnes Group consists of three businesses with
2004 sales of $994.7 million: Barnes Distribution, an international,
full-service distributor of maintenance, repair, operating, and
production supplies; Associated Spring, one of the world's largest
manufacturers of precision mechanical and nitrogen gas springs and a
global supplier of retaining rings, reed valves, shock discs, and
injection-molded plastic components; and Barnes Aerospace, a
manufacturer and repairer of highly engineered assemblies and
components for commercial and military aircraft engines, airframes,
and land-based industrial gas turbines. Over 6,000 dedicated employees
at more than 60 locations worldwide contribute to Barnes Group Inc.'s
success.
This release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those expressed in
the forward-looking statements. The risks and uncertainties, which are
described in our periodic filings with the Securities and Exchange
Commission, include, among others, uncertainties arising from the
behavior of financial markets; future financial performance of the
industries or customers that we serve; changes in market demand for
our products and services; integration of acquired businesses; changes
in raw material prices and availability; uninsured claims; and
numerous other matters of global, regional or national scale,
including those of a political, economic, business, competitive,
regulatory and public health nature. We assume no obligation to update
our forward-looking statements.
CONTACT: Barnes Group Inc.
Investor Relations
Brian D. Koppy, 860-973-2126
or
Corporate Communications
Stephen J. McKelvey, 860-973-2132
SOURCE: Barnes Group Inc.
