Ferro Corporation FOE 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.
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