Ferro Announces Successful Amendment to Credit Facility

Ferro Corporation

today announced the amendment of its existing senior credit facility. The amendment reflects a further benefit achieved through the Company's strategy to divest its solar pastes assets. The previously announced sale of Ferro's solar pastes assets increased operating cash flows and significantly reduced the size of the Company's precious metal consignment program and other working capital needs. As a result, Ferro is reducing the Company's revolving loan commitment from $350 million to $250 million. The amendment will lower annual commitment fees by approximately $500,000 and modify certain financial and leverage ratio covenants. Additional details can be found in the Form 8-K that the Company will file with the Securities and Exchange Commission. "Between cash on hand and expected cash from operations, we believe Ferro has sufficient cash resources to fully fund the initiatives now underway to reduce operating costs by over $50 million by the end of 2014," said Peter Thomas, Interim President and Chief Executive Officer of Ferro. "By amending Ferro's credit facility, very little of which currently has been utilized, we have gained significant additional financial flexibility to expand upon our cost savings programs and execute on other initiatives in our value creation strategy." The amendment was unanimously approved by the Company's bank group.