SOURCE: Shiloh Industries

November 19, 2009 08:30 ET

Shiloh Industries Enters Fourth Amendment of Its Credit Agreement

VALLEY CITY, OH--(Marketwire - November 19, 2009) - Shiloh Industries, Inc. (NASDAQ: SHLO) today announced the completion of the Fourth Amendment Agreement ("Fourth Amendment") of the Company's Credit and Security Agreement with a syndication of lenders led by PNC Bank National Association, successor to National City Bank, as co-lead arranger, sole book runner and administrative agent, and The Privatebank and Trust Company, as co-lead arranger and syndication agent. The Fourth Amendment provides the Company with a currently available revolving line of credit of $80,000,000 subject to a borrowing formula requirement. The line of credit matures in July 2012.

The Fourth Amendment addresses financial covenant issues that the Company was facing as a result of the current business conditions affecting the automotive industry in North America. Specifically, the Fourth Amendment waives compliance with certain financial covenants for the period from July 31, 2009 to October 31, 2009. Thereafter, the financial covenants are established at levels that are expected to be achievable in the near term and gradually adjust to levels that are expected to be attainable through the term of the agreement. The Company must also maintain agreed to levels of earnings before interest, taxes, depreciation and amortization as defined in the amendment for the three months ending at each month end date from October 31, 2009 to July 31, 2010.

Theodore K. Zampetis, President and CEO of Shiloh, stated, "Our focus on lowering the cost structure and generating positive cash flow enabled us to execute this Amendment. The financial flexibility and liquidity provided by the Amendment will support operating activities during the next several years."

Headquartered in Valley City, Ohio, Shiloh Industries is a leading manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries. The Company has 15 wholly owned subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 1,200.

Certain statements made by Shiloh Industries, Inc. in this release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, regarding the Company's operating performance, events or developments that the Company believes or expects to occur in the future, including those that discuss strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, awarded sales, volume growth, earnings or general belief in the Company's expectations of future operating results are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made on the basis of management's assumptions and expectations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include the ability of the Company to accomplish its strategic objectives with respect to implementing its sustainable business model; the ability to obtain future sales; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities; costs related to legal and administrative matters; the Company's ability to realize cost savings expected to offset price concessions; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel costs; work stoppages and strikes at the Company's facilities and that of the Company's customers; the Company's dependence on the automotive and heavy truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending, which is subject to the impact of domestic and international economic conditions and regulations and policies regarding international trade; financial and business downturns of the Company's customers or vendors, including any bankruptcies; increases in the price of, or limitations on the availability of, steel, the Company's primary raw material, or decreases in the price of scrap steel; the successful launch and customer acceptance of new vehicles for which the Company supplies parts; the occurrence of any event or condition that may be deemed a material adverse effect under the Company's credit agreement; a decreased customer demand which could cause a covenant default under the credit agreement; pension plan funding requirements; and other factors, uncertainties, challenges, and risks detailed in the Company's public filings with the Securities and Exchange Commission. The Company does not intend or undertake any obligation to update any forward-looking statements.

Contact Information

  • CONTACT:
    Kevin Bagby
    Vice President Finance
    And Chief Financial Officer
    Shiloh Industries, Inc.
    (330) 558-2600