Jarden Announces Successful Completion of the Extension to the Maturity of Its Senior Credit Facility
RYE, N.Y., Aug. 20 /PRNewswire-FirstCall/ -- Jarden Corporation (NYSE: JAH) today announced the creation of a new Term B4 tranche of its senior credit facility. Holders of the Company's existing term loans were given the opportunity to extend the maturity dates of $600 million of their commitments from January 2012 to January 2015 via an amendment and extension transaction. The extended term loan was fully subscribed and will bear an interest rate of LIBOR plus 3.25%. In addition, the amendment provides the Company increased financial flexibility in the future, including an increase in the size of its allowed accounts receivable securitization basket from $250 million to $400 million and an increase in its general debt basket from $75 million to $150 million.
Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation, commented, "Our successful extension of the maturity of $600 million of our Term B loans until 2015 completes the strategic realignment of Jarden's debt maturity profile we started in April. We anticipate Jarden will now have the capacity to cover its debt maturities over the next five years from free cash flow, cash on hand and available existing debt capacity. With the added flexibility of an upsized securitization and other indebtedness basket and our expected continued reduction in our bank leverage ratio, we believe we have significantly strengthened Jarden's current financial position in the continuing uncertain macro environment."
Deutsche Bank, Barclays Capital and JP Morgan acted as joint book-running lead managers in connection with the amendment and extension.
Jarden Corporation is a leading provider of niche consumer products. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia(R), Berkley(R), Campingaz(R) and Coleman(R), Fenwick(R), Gulp!(R), JT(R), K2(R), Marker(R), Marmot(R), Mitchell(R), Penn(R), Rawlings(R), Shakespeare(R), Stearns(R), Stren(R), Trilene(R), Volkl(R), and Zoot(R); Consumer Solutions: Bionaire(R), Crock-Pot(R), FoodSaver(R), Health o meter(R), Holmes(R), Mr. Coffee(R), Oster(R), Patton(R), Rival(R), Seal-a-Meal(R), Sunbeam(R), VillaWare(R) and White Mountain(R); and Branded Consumables: Ball(R), Bee(R), Bicycle(R), Crawford(R), Diamond(R), Dicon(R), First Alert(R), Forster(R), Hoyle(R), Kerr(R), Lehigh(R), Leslie-Locke(R), Loew Cornell(R) and Pine Mountain(R). Headquartered in Rye, N.Y., Jarden has over 20,000 employees worldwide. For more information, please visit www.jarden.com.
Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's adjusted earnings per share, repurchase of shares of common stock from time to time under the Company's stock repurchase program, the outlook for the Company's markets and the demand for its products, estimated sales, segment earnings, earnings per share, cash flows from operations, future revenues and margin requirement and expansion, organic growth, the success of new product introductions, growth in costs and expenses and the impact of acquisitions, divestitures, restructurings, and other unusual items, including the Company's ability to integrate and obtain the anticipated results and synergies from its acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company's periodic and other reports filed with the Securities and Exchange Commission.
