PW Eagle gets new $100 million revolver

By Sara Rosenberg

New York, Oct. 27 - PW Eagle Inc. closed on a new $100 million senior revolving credit facility due 2009, according to a company news release. Existing lenders Bank of America and CIT Group participated in the deal, along with new lender Wells Fargo.

The new revolver, which closed on Monday, replaces the company's previous senior credit facilities which expire in September 2005.

PW Eagle also issued $24 million in new subordinated notes due 2010 with Churchill Capital and repaid its existing $36.3 million of subordinated debt which mature in 2005 through 2007.

"The completion of this refinancing of our debt is consistent with the objectives of our strategic plan. Under these new financing arrangements, we will have a stable capital structure that will permit us to focus on improving our operations and performance and making the capital improvements necessary to become more efficient and to increase our capacity. In the future, as our performance and debt levels permit, we also anticipate being able to begin paying dividends and repurchasing our common stock," said William Spell, co-chairman, in the release.

As a result of these refinancing transactions, the company has improved its liquidity, reduced its interest expense and reduced the required principal debt payments for the next several years.

PW Eagle is a Eugene, Ore.-based extruder of PVC pipe products.

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