SOLON, Ohio, April 12, 2007 (PRIME NEWSWIRE) -- Advanced Lighting Technologies, Inc. ("ADLT") today announced that it has signed a commitment letter with CIT Lending Services Corporation, a subsidiary of CIT Group, Inc. (CIT), to refinance its existing credit facilities, provide working capital and fund future acquisitions. The new financing includes up to $185 million in secured credit facilities. The transaction, which is subject to documentation and customary closing conditions, is expected to close in May.
All facilities will mature in May 2013, except for a second lien term facility, which is a seven-year commitment. Proceeds from the facilities will be used to refinance amounts outstanding under ADLT's existing credit facilities, including revolving and term loan facilities and ADLT's 11% Senior Notes Due 2009, to provide working capital and to fund closing and other transaction costs incurred in connection with the financing. The Company intends to use the funds received in connection with the delayed draw term loan to fund future acquisitions.
Upon the closing of the transaction, ADLT will no longer file periodic reports with the Securities and Exchange Commission. ADLT has filed such reports since 2004 pursuant to an obligation to the holders of its 11% Senior Notes.
Commenting on the announcement, Wayne R. Hellman, chief executive officer of ADLT, said, "Refinancing our credit facilities will reduce our borrowing costs, provide greater flexibility in implementing our business strategies and enable us to meet our growth objectives. We are pleased for the support that CIT has shown in making this commitment, and we view this as a vote of confidence in our strategic plan."
About Advanced Lighting Technologies
Advanced Lighting Technologies, Inc. is an innovation-driven designer, manufacturer, and marketer of metal halide and other lighting products, which include materials, system components, systems and equipment. For more information on ADLT, please visit our website at www.adlt.com.
Some of the statements we make in this press release are forward-looking within the meaning of the federal securities laws, which are intended to be covered by the safe harbors created thereby. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations including, but not limited to, the closing of the refinancing transaction. The operation of ADLT and its subsidiaries involves risks and uncertainties, including the strength of the recovery of the U.S. economy, trends affecting ADLT's financial condition or results of operations, continued growth of the metal halide lighting market, ADLT's operating and growth strategies, litigation, the timely development and market acceptance of new products, the ability to provide adequate incentives to retain and attract key employees, the impact of competitive products and pricing, and other matters detailed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2006. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those indicated by such forward-looking statements based on the factors outlined above.
Although we believe that the assumptions underlying the forward-looking statements contained in this press release are reasonable, any of these assumptions could prove to be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by ADLT or any other person that our objectives and plans will be achieved. We undertake no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.