WALNUT CREEK, CA--(Marketwire - December 6, 2007) - American Reprographics Company (
NYSE:
ARP), the nation's leading provider of reprographics services and
technology, today announced that it completed the refinancing of its
existing credit facilities. The Company's new senior secured credit
facilities consist of a five-year $275 million term loan and a five-year
$75 million revolving credit facility, both increases from the Company's
current $264 million outstanding term loan and $30 million revolving credit
facility. The new facilities were priced at LIBOR plus 175 basis points and
were provided by a syndicate of international banks led by J.P. Morgan
Securities Inc. and Wachovia Capital Markets LLC, as Joint Lead Arrangers
and Joint Bookrunners, and Bank of America and Wells Fargo, as
Documentation Agents.
The refinancing provides American Reprographics Company with greater
financial flexibility while allowing for a continuation of the Company's
strategic acquisition program. The new agreement also is structured to
allow the Company to pursue stock repurchases of up to $200 million,
subject to certain financial conditions, primarily with proceeds from
permitted subordinated debt.
"We are extremely pleased with this outcome," stated K. "Suri" Suriyakumar,
President and CEO of American Reprographics Company. "At a time when the
credit markets are tough and market conditions are volatile, increasing the
size of our facilities with such attractive terms is a testament to the
underlying strength of our business. Moreover, the fact that some of the
world's leading banks have stamped their approval on these facilities after
extensive due diligence and a thorough review of our financials is very
gratifying." Mr. Suriyakumar also noted, "Our previous credit agreement
contained restrictions that prohibited the Company from engaging in any
stock repurchase transactions. ARC has been authorized to repurchase up to
$150 million of its common shares, and the new agreement provides us
opportunities to do so, primarily by issuing subordinated debt."
"Substantially increasing our credit facility provides more financial
flexibility for future growth initiatives," said Jonathan Mather, Chief
Financial Officer of American Reprographics Company. "We are pleased with
the pricing of this loan relative to today's tight credit market, as well
as Standard & Poor's improved rating of investment grade BBB- and Moody's
rating of Ba2 on the new facilities."
About American Reprographics Company
American Reprographics Company is the leading reprographics company in the
United States providing business-to-business document management technology
and services to the architectural, engineering and construction, or AEC
industries. The Company provides these services to companies in non-AEC
industries, such as technology, financial services, retail, entertainment,
and food and hospitality, which also require sophisticated document
management services. American Reprographics Company provides its core
services through its suite of reprographics technology products, a network
of more than 300 locally-branded reprographics service centers across the
U.S., and on-site at more than 4,000 customer locations. The Company's
service centers are arranged in a hub and satellite structure and are
digitally connected as a cohesive network, allowing the provision of
services both locally and nationally to more than 140,000 active customers.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements that fall within the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995 regarding future events and the future financial performance of the
Company. Words such as "opportunity," "allow the company to pursue,"
"underlying strength," "future growth initiatives," and similar expressions
also identify forward-looking statements. We wish to caution you that such
statements are only predictions and actual results may differ materially as
a result of risks and uncertainties that pertain to our business. These
risks and uncertainties include, among others:
-- Future downturns in the architectural, engineering and construction
industries could diminish demand for our products and services in the U.S
and China;
-- Competition in our industry and innovation by our competitors may
hinder our ability to execute our business strategy and maintain our
profitability;
-- Failure to anticipate and adapt to future changes in our industry
could harm our competitive position;
-- Failure to manage our foreign business units including our inability
to integrate and merge the business operations of partner companies, and
failure to retain key personnel and customers of partner companies could
have a negative effect on our future performance, results of operations and
financial condition;
-- Dependence on certain key vendors for equipment, maintenance services
and supplies, could make us vulnerable to supply shortages and price
fluctuations;
-- Damage or disruption to our facilities, our technology centers, our
vendors or a majority of our customers could impair our ability to
effectively provide our services and may have a significant impact on our
revenues, expenses and financial condition;
-- If we fail to continue to develop and introduce new services
successfully, our competitive positioning and our ability to grow our
business could be harmed.
The foregoing list of risks and uncertainties is illustrative but is by no
means exhaustive. For more information on factors that may affect future
performance, please review our SEC filings, specifically our annual report
on Form 10-K for the year ended December 31, 2006, our final prospectus
supplement dated March 8, 2007, and our quarterly reports on Form 10-Q for
the quarters ended March 31, 2007, June 30, 2007, and September 30, 2007.
These documents contain important risk factors that could cause actual
results to differ materially from those contained in our projections or
forward-looking statements. These forward-looking statements are based on
information as of December 6, 2007, and except as required by law, the
Company undertakes no obligation to update or revise any forward-looking
statements.
Contact Information: Contacts:
David Stickney
VP of Corporate Communications
Phone: 925-949-5100
Email:
David Pasquale
The Ruth Group
Phone: 646-536-7006
Email: