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8-K - FORM 8-K - UNIFI INC | g26176e8vk.htm |
Exhibit 99.1
For more information, contact:
Ronald L. Smith
Chief Financial Officer
(336) 316-5545
Ronald L. Smith
Chief Financial Officer
(336) 316-5545
Unifi, Inc. Completes Call for Partial
Redemption of its 11.5% Senior Secured
Notes due 2014
Redemption of its 11.5% Senior Secured
Notes due 2014
GREENSBORO, N.C., February 16, 2011 Unifi, Inc. (NYSE: UFI) announced today that it has
completed the previously announced redemption of an aggregate principal amount of $30,000,000 of
its 11.5% Senior Secured Notes due 2014 (the Notes). The Company redeemed the Notes pursuant to
their terms at 105.75% of the principal amount plus unpaid and accrued interest.
The total aggregate redemption price was approximately $32.6 million, including approximately $0.9
million in accrued interest. The Company financed the redemption through borrowings under its
revolving credit facility. Upon completion of this partial redemption, approximately $133.7 million
principal amount of the Notes remain outstanding.
As a result of this partial redemption, the Company expects to record in the third quarter of
fiscal 2011 a one-time charge for early extinguishment of debt of $2.2 million (of which $0.5
million is a non-cash charge related to the write off of unamortized debt issuance costs), or about
$0.11 cents per share. The Company expects this partial redemption to result in savings of
approximately $2.4 million in annualized net interest expense.
Unifi, Inc. (NYSE: UFI) is a diversified producer and processor of multi-filament polyester and
nylon textured yarns and related raw materials. The Company adds value to the supply chain and
enhances consumer demand for its products through the development and introduction of branded yarns
that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but
are not limited to: AIO® all-in-one performance yarns, SORBTEK®,
A.M.Y.®, MYNX® UV, REPREVE®, REFLEXX®,
MICROVISTA® and SATURA®. Unifis yarns and brands are readily found in home
furnishings, apparel, legwear, and sewing thread, as well as industrial, automotive, military, and
medical applications. For more information about Unifi, visit www.unifi.com, or to learn
more about REPREVE®, visit www.repreve.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements within the meaning of
federal securities laws about Unifi, Inc.s (the Company) financial condition and results of
operations that are based on managements current expectations, estimates and projections about the
markets in which the Company operates, as well as managements beliefs and assumptions. Words such
as expects, anticipates, believes, estimates, variations of such words and other similar
expressions are intended to identify such forward-looking statements. These statements are not
guarantees of future performance and involve certain risks, uncertainties and assumptions, which
are difficult to predict. Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which reflect managements
judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of
these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed
in, or implied by, these forward-looking statements include, but are not necessarily limited to,
availability, sourcing and pricing of raw materials, the success of our subsidiaries, pressures on
sales prices and volumes due to competition and economic conditions, reliance on and financial
viability of significant customers, operating performance of joint ventures, alliances and other
equity investments, technological advancements, employee relations, changes in construction
spending, capital expenditures and long-term investments (including those related to unforeseen
acquisition opportunities), continued availability of financial resources through financing
arrangements and operations, outcomes of pending or threatened legal proceedings, negotiation of
new or modifications of existing contracts for asset management and for property and equipment
construction and acquisition, regulations governing tax laws, other governmental and authoritative
bodies policies and legislation, and proceeds received from the sale of assets held for disposal.
In addition to these representative factors, forward-looking statements could be impacted by
general domestic and international economic and industry conditions in the markets where the
Company competes, such as changes in currency exchange rates, interest and inflation rates,
recession and other economic and political factors over which the Company has no control. Other
risks and uncertainties may be described from time to time in the Companys other reports and
filings with the Securities and Exchange Commission.
-end-