This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Xerium Technologies Announces Credit Facility Amendment

Xerium Technologies, Inc. (NYSE:XRM), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, today announced that, in a step designed to facilitate the streamlining of its operations, it has secured an amendment to its existing senior credit facility.

“We believe the amendment we obtained will provide the necessary financial flexibility to accelerate certain restructuring opportunities we have been studying under our strategic plan we call “Vision 2015.” When successfully implemented, we feel these restructuring efforts could improve gross margins by approximately 200 to 300 basis points and operating income by up to $20 million annually,” said Stephen R. Light, the Company’s Chairman, Chief Executive Officer and President. He added, “We appreciate the active engagement and support of our many lenders who recognized the potential benefits this amendment could bring to the Company.”

The amendment to the credit facility includes, among other changes, the following changes:
  • a change to the definition of Consolidated Operational Restructuring Costs to allow for additional add backs to Adjusted EBITDA up to the lesser of $15,000,000 or the Unused Maximum Consolidated Capital Expenditure Amount (as defined in the amendment) annually through 2015;
  • a small increase to the maximum leverage ratio covenant for the period beginning the third quarter of 2012 through the fourth quarter of 2013;
  • a change to the definition of Leverage Ratio to permit the netting of up to $25,000,000 of surplus unrestricted cash and cash equivalents held by certain of its foreign subsidiaries against total gross debt, subject to certain limitations;
  • an extended time period, until one year after the effective date of the amendment, in which the Company would owe a 1% prepayment premium in the event the Company refinanced its obligations under the credit facility at lower interest rates; and
  • a 0.75% interest rate increase on the term loans for eighteen months.

About Xerium Technologies

Xerium Technologies, Inc. (NYSE:XRM) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper-clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 31 manufacturing facilities in 14 countries around the world, Xerium has approximately 3,400 employees.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
GOOG $691.02 0.00%
FB $116.73 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs