The Manitowoc Company Enters Into New Senior Secured Credit Facilities

The Manitowoc Company, Inc. (NYSE: MTW) today announced the closing of its new senior secured credit facilities in the aggregate amount of $1.05 billion. The refinancing includes a revolving facility of $500 million with a term of five years, a Term Loan “A” facility of $350 million with a term of five years, and a Term Loan “B” facility of $200 million with a term of seven years.

This new credit facility extends the maturity dates of the company’s revolving credit facility and term loans from 2016 and 2017 to 2018 and 2020, respectively. The spread over the applicable LIBOR rate paid under the new revolving and Term Loan “A” facilities at the close declined 75 basis points to 2.25 percent, or alternatively, to 1.25 percent in excess of an alternate base rate, at the company’s option.

The refinancing will also enable the company to redeem its 9.5% Senior Notes due 2018 when they reach the conclusion of their non-call period in February 2014. In combination, the new credit facility and lower interest expense from the bond redemption should result in interest savings of approximately $20 million in 2014.

About The Manitowoc Company, Inc.

Founded in 1902, The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer with over 115 manufacturing, distribution, and service facilities in 26 countries. The company is recognized globally as one of the premier innovators and providers of crawler cranes, tower cranes, and mobile cranes for the heavy construction industry, which are complemented by a slate of industry-leading product support services. In addition, Manitowoc is one of the world's leading innovators and manufacturers of commercial foodservice equipment, which includes 24 market-leading brands of hot- and cold-focused equipment. In 2012, Manitowoc’s revenues totaled $3.9 billion, with more than half of these revenues generated outside of the United States.

Forward-looking Statements

This press release includes "forward-looking statements" intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as "intends," "expects," "anticipates," "targets," "estimates," and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
  • unanticipated problems with redeeming Manitowoc’s 9.50% senior notes due 2018;
  • unanticipated changes in capital and financial markets;
  • unanticipated changes in revenues, margins, costs, and capital expenditures;
  • the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals;
  • pressure of financing leverage;
  • changes in economic or industry conditions generally or in the markets served by Manitowoc; and
  • risks and other factors cited in Manitowoc's filings with the United States Securities and Exchange Commission.

Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

Copyright Business Wire 2010

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