Flow International Further Reduces Debt
30 April 2005
Flow International Corporation (Nasdaq: FLOW - News), the world's leading developer and manufacturer of ultrahigh-pressure waterjet technology equipment used for cutting, cleaning (surface preparation) and food safety applications, today announced that it has entered into a new $30 million senior credit agreement with Bank of America N.A. and U.S. Bank N.A. The previous facility with Bank of America N.A. and General Electric Capital Corporation was a $25.2 million commitment, expiring on August 1, 2005. This new short-term facility has the same expiration date as the previous facility and similar terms, except that the interest rate has been decreased from prime rate plus 6% to LIBOR plus 2.5% and the commitment has been increased to $30 million. This new facility, however, allows the Company to payoff its outstanding subordinated debt, which the Company did on April 28, 2005. With the subordinated debt retired, it is anticipated that FLOW will begin negotiations on a new long-term senior debt facility, with terms that more favorably reflect the improved state of the Company's financial condition, as well as the current borrowing environment. The Company expects to have a new long-term senior facility in place prior to August 1, 2005.
About Flow International
FLOW provides total system solutions for various industries, including automotive, aerospace, paper, job shop, surface preparation, and food production. For more information, visit www.flowcorp.com.
This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. The words "believe," "expect," "intend," "anticipate," variations of such words and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward-looking. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on a number of risk factors, including those set forth in the April 6, 2005 Flow International Corporation Form 10-K/A Report filed with the Securities and Exchange Commission. Forward-looking statements in this press release include, without limitation, that it is anticipated that FLOW will begin negotiations on a new long-term senior debt facility, with terms that more favorably reflect the improved state of the Company's financial condition and that the Company expects to have a new long-term senior facility in place prior to August 1, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.
Contact:
Steve Reichenbach
Chief Financial Officer
253-850-3500
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Source: Flow International Corporation
Source: PR Newswire
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