Key Developments For Patrick Industries Inc
Patrick Industries Inc (PATK.O) (Consolidated Issue listed on NASDAQ Global Market)
Patrick Industries, Inc. Completes Sale Of Aluminum Extrusion Operation
Patrick Industries, Inc. announced that it has completed the sale of certain assets of its aluminum extrusion operation located in Mishawaka, Indiana to Patrick Aluminum, Inc., a member of the UMC family of companies. Net proceeds from the sale were $7.4 million and are subject to final transaction costs and certain closing adjustments. Approximately $4.4 million of the net proceeds were used to pay down principal on the Company's term loan and pay off its Economic Development Revenue Bonds related to this facility, and the remaining funds were used to reduce borrowings on the Company's revolving line of credit.
Patrick Industries, Inc. Signs Definitive Agreement To Sell Aluminum Extrusion Operation
Patrick Industries, Inc. announced that it has signed a definitive agreement to sell certain assets of its aluminum extrusion operation located in Mishawaka, Indiana to Patrick Aluminum, Inc., a member of the UMC family of companies. The transaction is expected to be completed by the end of July 2009. Net proceeds from the sale are expected to be approximately $7.4 million and are subject to final transaction costs and certain closing adjustments.
Patrick Industries, Inc. Completes New Amendment of Its Credit Agreement
Patrick Industries, Inc. announced that it has entered into a third amendment and waiver to its senior secured credit agreement dated May 18, 2007. The Third Amendment includes both the addition and modification of certain definitions, terms and reporting requirements. Effective with the Third Amendment to the Credit Agreement, the Company's credit facility consists of a term loan and a revolving line of credit. Borrowings under the revolving line of credit are subject to a borrowing base, up to a borrowing limit. The maximum borrowing limit amount was reduced from $33.0 million to $29.0 million. The principal amount outstanding under the term loan at March 29, 2009 remained unchanged. The interest rates for borrowings under the revolving line of credit and the term loan, and the expiration date of the Credit Agreement also remained unchanged.
Patrick Industries, Inc. Announces Todd Cleveland to Succeed Paul Hassler as CEO
Patrick Industries, Inc. announced that Todd M. Cleveland, President and Chief Operating Officer, will succeed Paul E. Hassler as Chief Executive Officer (CEO) effective February 1, 2009, in accordance with the Company's executive succession plan. Mr. Cleveland will continue in his role as President and Mr. Hassler will continue in his role as Chairman of the Board of Directors.
Patrick Industries, Inc. Completes Amendment of Its Credit Agreement
Patrick Industries, Inc. announced that it has entered into a second amendment and waiver (the Amendment) to its senior secured credit agreement dated May 18, 2007 (the Credit Agreement). The Amendment includes both the addition and modification of certain definitions, terms and reporting requirements and amends the termination date of the Credit Agreement to expire on January 3, 2011. The Company's credit facility will continue to consist of a term loan and a revolving line of credit. Borrowings under the revolving line of credit are subject to a borrowing base, up to a borrowing limit of $33.0 million. The principal amount outstanding under the term loan of approximately $38.5 million at September 30, 2008 remains unchanged under the amended terms. Pricing under the revolving line of credit and the term loan has been adjusted to be more consistent with current market rates for similar credits. As part of the lenders' consideration for the Amendment, on December 11, 2008, the Company entered into a Warrant Agreement under which the Company issued warrants to the lenders to purchase an aggregate of 474,049 shares of common stock, subject to adjustment, at an exercise price per share of $1 (the Warrants).
