Attached files
| file | filename |
|---|---|
| 8-K - MOD PAC CORP | v188031_8k.htm |
| EX-10.2 - MOD PAC CORP | v188031_ex10-2.htm |
| EX-10.1 - MOD PAC CORP | v188031_ex10-1.htm |
MOD-PAC
CORP. × 1801 Elmwood
Avenue × Buffalo, NY × 14207
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For
more information contact:
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Kei
Advisors LLC
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Deborah
K. Pawlowski
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716.843.3908
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Dpawlowski@keiadvisors.com
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FOR
IMMEDIATE RELEASE
MOD-PAC
CORP. Secures New Three-Year Credit Agreement
BUFFALO,
N.Y., June 14, 2010 -- MOD-PAC CORP. (NASDAQ: MPAC) (the “Company”), a
manufacturer of custom paper board packaging and provider of personalized print
products, announced today that it has completed an agreement for a new $3.0
million, three-year revolving credit facility with Manufacturers and Traders
Trust Company. The new facility replaces the Company’s $5.0 million
line of credit, which expired in March 2010.
David B.
Lupp, Chief Operating Officer and Chief Financial Officer, noted, “This
agreement confirms our strong cash generation, solid balance sheet, and improved
liquidity. The new facility provides MOD-PAC with the financial
flexibility to support our growth strategy of expanding the Company’s core
product lines, and allows us to continue to focus on achieving operating
efficiencies.”
The $3.0
million, three-year revolving credit facility closed on June 9,
2010. The interest rate on the new credit facility is based on a
LIBOR rate, plus 2.75%, with an interest rate floor of 3.35%. The
Company may allocate up to $1.5 million of its availability under the credit
agreement for the issuance of letters of credit.
ABOUT
MOD-PAC CORP.
MOD-PAC CORP. is a high value-added, on
demand print services firm providing products and services in two product
categories: folding cartons and personalized print. Within folding cartons,
MOD-PAC provides CUSTOM FOLDING CARTONS for branded and private label consumer
products in the food and food service, healthcare, medical and automotive
industries. The Company also offers a line of STOCK PACKAGING primarily to the
retail confectionary industry. MOD-PAC’s PERSONALIZED PRINT product line is a
comprehensive offering for consumer and corporate social
occasions.
MOD-PAC’s strategy for growth is to
leverage its capabilities to innovate and aggressively integrate technology into
its production operations providing cost-effective solutions for its customers.
Through its large, centralized facility, the Company has captured significant
economies of scale by channeling large numbers of small-to-medium-sized orders
through its operations due to its rapid order change out skills. Applying its
lean manufacturing processes coupled with state-of-the-art printing
technologies, MOD-PAC is able to address short-run, highly variable content
needs of its customers with quick turn around times relative to industry
standards.
Additional information on MOD-PAC can be
found at its website: http://www.modpac.com.
Safe
Harbor Statement:
This
press release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. One can identify these
forward-looking statements by the use of the words such as "expect,"
"anticipate," "plan," "may," "will," "estimate" or other similar expressions.
Because such statements apply to future events, they are subject to risks and
uncertainties that could cause the actual results to differ materially.
Important factors, which could cause actual results to differ materially,
include market events, competitive pressures, changes in technology, customers
preferences and choices, success at entering new markets, the execution of its
strategy, marketing and sales plans, the rate of growth of internet related
sales, the effectiveness of agreements with print distributors and other factors
which are described in MOD-PAC’s annual report on Form 10K on file with the
Securities and Exchange Commission. The Company assumes no obligation to update
forward-looking information in this press release whether to reflect changed
assumptions, the occurrence of unanticipated events or changes in future
operating results, financial conditions or prospects, or otherwise.
###