SOURCE: Nashua Corporation

May 29, 2007 09:15 ET

Nashua Corporation Announces New Financing Agreement

NASHUA, NH--(Marketwire - May 29, 2007) - Nashua Corporation (NASDAQ: NSHA), a manufacturer and marketer of labels and thermal specialty papers, today announced that it has signed a new five-year secured financing agreement with LaSalle Bank NA and Bank of America that provides a secured revolving credit facility of $28 million and a secured term loan of $10 million. The agreement, which is effective May 23, 2007, replaces the Company's existing credit facility with these banks that was set to expire in March 2009. Proceeds under the revolver and term loan will be available to repay borrowings under Nashua's existing credit facility, purchase Nashua shares, fund working capital, fund permitted acquisitions and other general corporate purposes.

John Patenaude, Nashua's Vice President - Finance, Chief Financial Officer and Treasurer, stated, "The new agreement should provide Nashua with the flexibility it requires for the future. Both of these institutions have been long-time supporters of the Company, and we are pleased to extend our relationship with them."

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company's products include thermal coated papers, pressure-sensitive labels, colored copier papers, bond, point of sale, ATM and wide-format papers, entertainment tickets, as well as toners, developers, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at www.nashua.com.

Forward-looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including earnings, revenue and profitability projections. When used in this press release, the word "should" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the Company's future capital needs and resources, fluctuations in customer demand, intensity of competition from other vendors, timing and acceptance of new product introductions, delays or difficulties in programs designed to increase sales and profitability, general economic and industry conditions, the impairment of goodwill, and other risks set forth in the Company's filings with the Securities and Exchange Commission, and the information set forth herein should be read in light of such risks. In addition, any forward-looking statements represent the Company's estimates only as of the date of this press release and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if its estimates change.

Contact Information

  • Contact:
    Tom Brooker/John Patenaude
    Nashua Corporation
    847-318-1797/603-880-2145

    Rich Coyle
    Sard Verbinnen & Co
    212-687-8080