Attached files
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| 8-K - CURRENT REPORT - B/E AEROSPACE INC | ss107246_8k.htm |
| EX-10.1 - AMENDED AND RESTATED CREDIT AGREEMENT - B/E AEROSPACE INC | ss107246_ex1001.htm |
Exhibit
99.1
#10-23
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News
Release
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CONTACT:
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Greg
Powell
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Vice
President, Investor Relations
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B/E
Aerospace
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(561)
791-5000 ext. 1450
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B/E
AEROSPACE ANNOUNCES CLOSING OF NEW $750 MILLION
REVOLVING
CREDIT FACILITY
WELLINGTON,
FL, December 10, 2010 – B/E Aerospace, Inc. (Nasdaq: BEAV) (the
“Company”), announced today that it has prepaid the $343 million outstanding
balance on its existing bank term loan and that it has replaced both the
existing bank term loan and its existing revolving credit facility with a new
$750 million revolving credit facility.
The amended and restated credit
agreement (the “2010 Credit Agreement”) provides for a $750 million senior
secured revolving credit facility, which matures in December
2015. Borrowings under the 2010 Credit Agreement will bear interest
at LIBOR (currently approximately 0.38 percent) plus 250 basis
points. The 2010 Credit Agreement provides the Company with an
option, subject to the satisfaction of certain conditions, to convert
outstanding borrowings into one or more new term loans, and to retain the
existing $750 million revolving credit facility.
On a pro forma basis, giving effect
to the 2010 Credit Agreement, the repayment of existing bank term loan
borrowings and the recent acquisitions of TSI Group, Inc. and Satair A/S
aerospace fastener distribution business as if they occurred on September 30,
2010, the Company’s cash balance would have been approximately $363 million,
long-term debt would have been approximately $1.6 billion (including
approximately $359 million of revolving credit facility borrowings initially
drawn at closing of the 2010 Credit Agreement), and the Company’s net
debt-to-net capital ratio would have been approximately 44
percent.
Amin J. Khoury, Chairman and Chief
Executive Officer commented, “The financing we announced today provides the
Company with significant financial flexibility, strengthens our liquidity, and
lowers our interest expense on bank borrowings.”
Mr. Khoury concluded, “The Company
expects to report full year 2010 debt prepayment costs of approximately $0.08
per share, including approximately $0.02 per share which was reported in the
second quarter of 2010.”
The Company entered into the 2010
Credit Agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, UBS
Securities LLC and Credit Suisse Securities (USA) LLC, as Syndication Agents,
The Royal Bank of Scotland plc, SunTrust Bank and Wells Fargo Bank, N.A., as
Documentation Agents, and various lenders named therein. The Company
will file a Current Report on Form 8-K with the Securities and Exchange
Commission regarding the 2010 Credit Agreement.
This news release contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Such forward-looking statements involve risks and
uncertainties. The Company’s actual experience and results may differ materially
from the experience and results anticipated in such
statements. Factors that might cause such a difference include those
discussed in the Company’s filings with the Securities and Exchange Commission,
which include the Registration Statement, prospectus, and preliminary prospectus
supplement related to this offering, its Proxy Statement, Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. For more
information, see the section entitled "Forward-Looking Statements" contained in
the Company’s Annual Report on Form 10-K and in other filings. The
forward-looking statements included in this news release are made only as of the
date of this news release and, except as required by federal securities laws,
the Company does not intend to publicly update or revise any forward-looking
statements to reflect subsequent events or circumstances.
About
B/E Aerospace
B/E Aerospace is the world’s leading
manufacturer of aircraft cabin interior products and the world’s leading
distributor of aerospace fasteners and consumables. B/E Aerospace
designs, develops and manufactures a broad range of products for both commercial
aircraft and business jets. B/E Aerospace manufactured products
include aircraft cabin seating, lighting, oxygen, and food and beverage
preparation and storage equipment. The company also
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provides cabin interior design,
reconfiguration and passenger-to-freighter conversion
services. Products for the existing aircraft fleet – the aftermarket
– generate approximately 50 percent of sales. B/E Aerospace sells and
supports its products through its own global direct sales and product support
organization.
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