Manitowoc Company negotiates new credit agreement; Actuant reaches amended credit agreement, updates earnings projections; Cash-strapped Midwest Airlines gets $12 million in new financing
Manitowoc Company negotiates new credit agreement
The Manitowoc Company Inc. has successfully negotiated an amendment to its credit agreement.
The amended $2.63 billion senior credit facility became effective Monday and includes revised financial covenant ratios through the remaining life of the agreement.
"Our amendment was not driven by liquidity issues, but rather due to the financial ratio impact of lower sales volumes and reduced profitability during these challenging economic times," said Glen Tellock, Manitowoc’s chairman and chief executive officer. "We are pleased that our lenders agreed with the terms of the proposed amendment, which not only gives us the flexibility to manage our businesses during this downturn and continue our debt reduction objectives, but also enables us to strongly position the company to take full advantage of the next upturn."
J.P. Morgan arranged the amendment for Manitowoc as the administrative agent.
Actuant reaches amended credit agreement, updates earnings projections
Actuant Corp., a Butler-based manufacturer, finalized an amended credit agreement last week. The company’s quarterly payments in the $113 million term loan have increased from $1.5 million per quarter to $10 million, and its leverage ratios have increased through Aug. 31 and rise again from Nov. 30 to Feb. 28, 2010.
Actuant has also decreased its projected third quarter earnings – the company now believes it will earn about $290 million, which will result in six to eight cents per share for the quarter.
“Due to the acceleration of certain restructuring actions, as well as the introduction of additional cost reduction initiatives, our restructuring costs for the third quarter will be approximately $12 million, or $4 million to $6 million ($.04 to $.06 per diluted share) higher than our previous guidance,” said Robert Arzbaecher, CEO. “I am very pleased with both the speed and execution of the restructuring actions we’ve taken to date, which will position Actuant for improved profit margins and asset returns in the future.”
Cash-strapped Midwest Airlines gets $12 million in new financing
Oak Creek-based Midwest Airlines has obtained $12 million in additional debt financing. The debt financing consists of $6 million each from Fort Worth, Texas-based TPG Capital, Midwest’s majority owner, and Republic Airways.
Midwest also announced that it has amended its air services agreement with Republic to include 12 37- to 50-seat Embraer jets to serve several Midwest Connect routes. The jets will be phased into service from July 2009 through January 2010.
As a component of its ongoing restructuring plan, Midwest has reached a settlement agreement with SkyWest Airlines and will return the 12 50-seat Canadair regional jets SkyWest currently operates for Midwest.
"I’d like to thank SkyWest employees for their dedication to providing Midwest Connect customers with quality service over the past several years," said Timothy Hoeksema, Midwest Airlines chairman.
