SOURCE: Presstek, Inc.

Presstek, Inc.

October 02, 2009 09:15 ET

Presstek Announces Modification of Loan Agreement

GREENWICH, CT--(Marketwire - October 2, 2009) - Presstek, Inc. (NASDAQ: PRST), the leading manufacturer and marketer of digital offset business solutions, today announced that it entered into an agreement with its bank lenders to modify the Company's current credit agreement. Under the terms of the modification, the lenders have agreed to extend the credit agreement from its previous expiration of November 4, 2009 until December 15, 2009. The banks have also agreed to forbear from exercising their rights and remedies resulting from the Company's recently announced covenant violations under the credit agreement. The Company said that it expects to enter into a new credit facility sufficient to repay the current outstanding indebtedness on or before December 15, 2009, although there can be no assurance that the Company will enter into a new credit facility.

The modification lowers the Company's availability under the revolving portion of the facility from $45 million to $27 million. The Company said that it expects this amount to be sufficient to satisfy its current credit needs. The Company's term loan, in the original amount of $35 million, has a current balance of approximately $0.8 million, which is expected to be paid upon the expiration of the revised credit agreement. In addition, the modification amends provisions of the credit agreement, including but not limited to provisions relating to interest rate, permissible expenditures and investments that do not require lender approval and events of default, and also provides for the payment of a fee to the lenders.

About Presstek

Presstek, Inc. is the leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI®, CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins. Presstek subsidiary, Lasertel, Inc., manufactures semiconductor laser diodes for Presstek's and external customers' applications. For more information visit www.presstek.com, or call 603-595-7000 or email: info@presstek.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectation for obtaining a new credit facility sufficient to repay the Company's current outstanding indebtedness, the Company's expectation that it will pay the balance of its term loan and the Company's expectation for the amount of credit sufficient to satisfy the Company's current credit needs. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of the Company to successfully negotiate a new credit facility with a lender sufficient to repay the Company's indebtedness, the ability of the Company to generate sufficient cash from its operations to enable it to operate under its reduced credit availability and other risks and uncertainties detailed in the Company's 2008 Annual Report on Form 10-K and the Company's other reports on file with the Securities and Exchange Commission. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "project(s)," "likely," "opportunity," and similar expressions, among others, identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to update any forward-looking statements contained in this news release.

Contact Information

  • Contact:
    Linda S. Lennox
    Investor Relations Consultant
    203-275-6292
    Email Contact