Columbus McKinnon obtains $170 million credit facility

By Sara Rosenberg

New York, Nov. 27 - Columbus McKinnon Corp. obtained a $100 million senior secured credit facility and a $70 million senior secured term loan in a private transaction. Fleet Capital Corp. acted as the agent and Fleet Securities Inc. placed the term loan.

The new $100 million facility consists of a $67 million revolver and $33 million term loan, which amortizes quarterly over seven years starting on March 31, 2003. The $100 million facility matures on March 31, 2007. A portion of the $70 million term loan matures in May 2007 and the remaining balance matures in November 2007.

The new loans will be used to refinance the company's existing senior secured $150 million credit facility.

"The refinancing of our existing credit facility, which was going to mature in March 2003, has stabilized our capital structure and extended the maturity of our senior debt by approximately four years while providing continued liquidity to fund our working capital needs. This transaction reduces our financial risk and provides us with the time and flexibility to manage our business through this difficult economic environment. It also allows us to continue to focus on additional facility rationalizations and implementing lean manufacturing which will further reduce costs and support accelerated debt repayment," said Timothy T. Tevens, president and chief executive officer, in a news release.

Columbus McKinnon, based in Amherst, N.Y., is a designer, manufacturer and supplier of material handling products for industrial and consumer markets.

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