KMG Chemicals, Inc. (NASDAQ GS: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has amended, increased, and extended its existing revolving credit facility with Wells Fargo & Co. and Bank of America, N.A.
Among other things, maximum borrowings permitted under the amended five-year facility increased to $60.0 million from $50.0 million and the maturity date was extended to December 31, 2016 from December 31, 2012. The variable interest rate calculation under the new facility remains unchanged; currently, the interest rate is 2.00% over LIBOR. At October 31, 2011, there was $24 million borrowed on the revolving facility and there were no amounts outstanding on the term loan. Including the $20 million fixed-rate notes maturing in December 2014, KMG had total debt of $44 million on October 31, 2011.
John V. Sobchak, KMG’s Chief Financial Officer, commented, “We value our long-term relationship with these lenders and appreciate their continuing confidence in KMG. We believe the Company is well positioned to generate significantly improved results in fiscal 2012, assuming no severe disruptions to the economy. We are focused on additional consolidating acquisitions in our existing businesses, as well as attractive opportunities to expand into a new platform business. The support of our lenders enables us to pursue these growth opportunities to enhance KMG’s long-term value for our shareholders.”
About KMGKMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and optimizing stable chemical product lines and businesses with established production processes. Its current operations are focused on the wood treatment, electronic, and agricultural chemical markets. For more information, visit the Company's web site at www.kmgchemicals.com. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV