$225 MILLION REVOLVING CREDIT FACILITY
New York, NY, April 30, 2001…….Standard Motor Products, Inc. (NYSE:SMP), automotive replacement parts manufacturer and distributor, announced that the Company has secured a $225 million revolving credit facility with GE Capital acting as Agent for a syndicate of lenders. The credit facility, which is for five-years and up to $225 million, will be used to refinance certain indebtedness, provide working capital financing, and fund other general corporate purposes.
The retired debt includes approximately $97 million outstanding on a revolving credit facility, a $52 million Senior Note, a $25 million accounts receivable securitization, and a $5 million Canadian credit facility. The Company will record an extraordinary loss of $2.7 million, net of taxes, in the second quarter 2001, for a prepayment penalty and write-off of unamortized fees for the retirement of the above debt instruments.
The new $225 million revolving credit facility will be secured primarily with the Company’s accounts receivable, inventory and fixed assets.
James J. Burke, Chief Financial Officer of Standard Motor Products, stated, "We are very pleased with the new facility. It provides the liquidity to meet our seasonal financing needs and the flexibility to make judicious acquisitions to grow our Engine Management and Temperature Control product lines."
This news release contains certain forward-looking statements that involve risks and uncertainties. Actual results, events and performance could differ materially from those contemplated by these forward looking statements. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in this release and those detailed from time-to-time in prior public statements and the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K and the Company’s quarterly reports on Form 10-Q.
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