[ACTM gets $100 million 5-year term loan to buy BEA.]
Thursday July 13, 9:00 pm Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
ACT Manufacturing, Inc. Announces New Bank Agreement
HUDSON, Mass., July 13 /PRNewswire/ -- ACT Manufacturing,
Inc. (Nasdaq: ACTM - news) today announced that it had
executed a new $250 million Senior Secured Credit Facility
arranged by The Chase Manhattan Bank who acted as lead
arranger, book manager and administrative agent on the
transaction. In addition, Credit Suisse First Boston acted as
syndication agent and Societe Generale acted as documentation
agent. Other managing agents include CitiBank, N.A., Firstar
Bank, N.A., and General Motors Acceptance Credit Corporation.
This agreement replaces the Company's $125 million Senior
Secured Credit Facility dated July 29, 1999, as amended, with
The Chase Manhattan Bank, individually and as agent for other
lending institutions. Jeffrey B. Lavin, CFO, said, ``We are
extremely pleased with our new banking facility. The
worldwide presence and stability coupled with the breadth and
depth of services provided by The Chase Manhattan Bank and
the other agents and participants are very important to the
success of ACT Manufacturing, Inc. as we globalize our
Company.''
The new $250 million credit facility includes a five-year
$150 million revolving credit facility and $100 million of
term loans which amortize over a five-year period. The new
revolving credit facility will refinance the amount
outstanding under the $125 million facility and provide
additional working capital financing. The term loans will be
used to finance the Bull Electronics Angers (``BEA'')
acquisition and refinance a portion of outstanding
indebtedness of GSS Array Technology Public Company Limited
(``GSS Thailand'') upon closing of that acquisition, if
necessary.
ACT Manufacturing, Inc., headquartered in Hudson,
Massachusetts, provides value-added electronics manufacturing
services to original equipment manufacturers in the
networking and telecommunications, computer and industrial
and medical equipment markets. The Company provides OEMs with
complex printed circuit board assembly primarily utilizing
advanced surface mount technology, electro-mechanical
subassembly, total system assembly and integration,
mechanical and molded cable and harness assembly, and other
value-added services. The Company has operations in
California, Georgia, Massachusetts, Mississippi, Mexico,
Ireland and Taiwan.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to risks and uncertainties that
could cause actual results to differ materially from those
anticipated, including statements concerning the potential
uses of the new credit facility, the potential acquisitions
of BEA and GSS Thailand, the effects of the acquisitions,
expected financial and operating results, synergies, growth
of the customer base, future customer shipments, and the
plans and objectives of management. Those risks and
uncertainties include, among others: the inability to close
the acquisitions in a timely fashion; the risk of not
integrating the BEA or GSS Thailand businesses successfully;
the inability to achieve expected synergies; costs associated
with the acquisitions; the effectiveness of managing
manufacturing processes; increased competition and its
effects on pricing, revenues and gross margins, and its
customer base; future customer demand; the Company's ability
to timely complete, configure and ship products; and changes,
reductions, delays or cancellations of customer orders. In
addition, the Company's business and results of operations
are subject to numerous additional risks and uncertainties,
including the short-term nature of customer orders,
customers' announcements and introductions of new products or
new generations of products, evolutions in the life cycles of
customers' products, inventory obsolescence, currency
exchange rate movements, trends in the electronics industry
and changes or anticipated changes in economic conditions.
For a more detailed discussion of the risks and uncertainties
of the Company's business, please refer to the Company's
periodic reports and registration statements filed with the
Securities and Exchange Commission, including the Company's
Annual Report on Form 10-K for the period ended December 31,
1999 and Quarterly Report on Form 10-Q for the period ended
March 31, 2000.
SOURCE: ACT Manufacturing, Inc. |
