Milacron amends loan, changing EBITDA covenants and raising restructuring expenses cap

By Sara Rosenberg

New York, Aug. 14 - Milacron Inc. amended its revolver, relaxing certain financial covenants through the end of 2003, including the minimum levels of cumulative EBITDA requirement, and raising the limit on restructuring expenses.

Furthermore, the credit facility is now capped at $65 million, of which $54 million is currently utilized.

Terms of the facility that remain unchanged include a final step-down to $55 million on Dec. 15, 2003 and its expiration on March 15, 2004.

The amendment was sought after due the extended downturn in the plastics industries and to allow the company to execute its recently announced initiatives to return to profitability that are designed to save the Milacron approximately $20 million annually.

"We very much appreciate the flexibility our bank group has given us during this prolonged manufacturing recession," said Ronald D. Brown, chairman and chief executive officer, in a news release. "This amendment enables us to move ahead with our needed profit-improvement initiatives while continuing to help our customers meet their needs as well."

Deutsche Bank is the arranger and administrative agent and PNC Bank is the documentation agent on the loan.

Milacron is a Cincinnati manufacturer and seller of plastics-processing equipment and supplies.

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