SOURCE: Shiloh Industries

April 25, 2011 06:15 ET

Shiloh Industries Completes Amended and Restated Credit Agreement

VALLEY CITY, OH--(Marketwire - Apr 25, 2011) - Shiloh Industries, Inc. (NASDAQ: SHLO) today announced the completion of an amended and restated Credit and Security Agreement with a syndicate of lenders led by The Privatebank and Trust Company, as co-lead arranger, sole book runner and administrative agent, PNC Capital Markets, LLC, as co-lead arranger, and PNC Bank, National Association, as syndication agent. The agreement provides the Company with a revolving line of credit of $80,000,000. The line of credit has a maturity date of April 2016.

The amended and restated agreement improves the effective interest rate to LIBOR plus 250 basis points through June 2011 and thereafter LIBOR plus a margin between 250 and 350 basis points, based on the Company's leverage ratio. The agreement will provide funds for working capital needs and general corporate purposes and liquidity for the Company.

Theodore K. Zampetis, President and CEO of Shiloh, stated that, "Our continued focus on lowering our operating cost structure, generating positive cash flow, accomplishing a trend of positive financial performance, has enabled us to secure this amended and restated credit agreement. The completion of this agreement will provide a secure source of financing to support our operating activities and explore strategic opportunities, if they arise, over the next five years. This agreement demonstrates our banking group's recognition of the superior performance that Shiloh continues to achieve, and their commitment to Shiloh's business strategy."

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, Kentucky, and Mexico, and employs approximately 1,250.

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 and utility costs; work stoppages and strikes at the Company's facilities and that of the Company's customers or suppliers; 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, including increased energy costs affecting car and light truck production, and regulations and policies regarding international trade; financial and business downturns of the Company's customers or vendors, including any production cutbacks or 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 consumer 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 Credit Agreement or a decrease in 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 other public filings with the Securities and Exchange Commission. Any or all of these risks and uncertainties could cause actual results to differ materially from those reflected in the forward-looking statements. These forward-looking statements reflect management's analysis only as of the date of this release.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. In addition to the disclosures contained herein, readers should carefully review risks and uncertainties contained in other documents the Company files from time to time with the Securities and Exchange Commission.

Contact Information

  • CONTACT:
    Thomas M. Dugan
    Vice President of Finance and Treasurer
    Shiloh Industries, Inc.
    (330) 558-2600