DAYTON, Ohio, April 1, 2011 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported that it entered into a new five-year senior unsecured credit facility, replacing its previous credit facility that was scheduled to expire in December 2011. The new credit facility provides for $150 million of revolving borrowing capacity and includes an expansion option of $150 million, subject to certain conditions. Borrowings under the credit facility are subject to a pricing grid, with initial borrowings priced at LIBOR plus 125 basis points. The facility was arranged by J.P. Morgan Securities LLC. The bank group was increased from six to eight banks.
"We are pleased to have an expanded group of banks to support our growth strategy," said Christopher M. Hix, Chief Financial Officer of Robbins & Myers, Inc. "Our new credit agreement includes attractive pricing and flexibility, recognizing our strong financial condition and the bank group's confidence in the future of the Company. The new facility, along with existing cash balances, proceeds from the sale of the Romaco businesses, and future cash flows, gives us ample capacity to fund our operating and strategic growth."
About Robbins & Myers
Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.
Statements set forth in this press release that are not historical facts, including the proposed sale of the Romaco businesses (including its benefits, effects and timing), are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company's control, which could cause actual benefits, results, effects and timing to differ materially from the results predicted or implied by the statements. These risks and uncertainties include, but are not limited to: whether or when the sale of the Romaco businesses will occur (including receipt of regulatory approval); costs and difficulties related to integration of T-3; the inability to or delay in obtaining cost savings and synergies from the T-3 merger; inability to retain key personnel; changes in the demand for or price of oil and/or natural gas; a significant decline in capital expenditures within the markets served by the Company; the ability to realize the benefits of restructuring programs; increases in competition; changes in the availability and cost of raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and performance in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; the possibility of product liability lawsuits that could harm our businesses; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow; decline in the market value of our pension plan investment portfolios; and other important risk factors discussed more fully in the Company's reports on Form 10-K for the year ended August 31, 2010; its recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K; and other reports filed from time to time with the SEC. Robbins & Myers does not undertake any obligation to revise or update publicly any forward-looking statements for any reason.
SOURCE Robbins & Myers, Inc.