Rocky Brands, Inc. Announces Refinancing of Term Loans
Rocky Brands, Inc.
Jim McDonald
(740) 753-1951
Chief Financial Officer
Investor Relations:
Integrated Corporate Relations, Inc.
Brendon Frey
(203) 682-8200
NELSONVILLE, Ohio -- May 18, 2010 -- Rocky Brands, Inc. today announced that it has received approval from the requisite lenders, including GMAC Commercial Finance, LLC, under the Amended and Restated Loan and Security Agreement, dated May 25, 2007, as amended from time to time, to advance $15 million to the Company under the existing revolving portion of its credit facility to prepay amounts due under term loans with Laminar Direct Capital L.P. and Whitebox Hedged High Yield Partners, L.P. After the prepayment, principal under the term loans will total approximately $11 million in the aggregate. The term loans have an interest rate of 11.5% payable semi-annually over the five year term of the notes. Principal repayment is due at maturity in May 2012. The interest rate for the revolving portion of the Company’s credit facility is currently LIBOR plus 3.75%. The transaction is expected to generate approximately $1.1 million in interest savings annually based on the current LIBOR rate. The transaction is expected to close on Wednesday, May 19, 2010.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky®, Georgia Boot®, Durango®, Lehigh®, and the licensed brands Michelin® and Mossy Oak®.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management and include statements in this press release regarding interest savings and the closing of the transaction (paragraph 2). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2009 (filed March 2, 2010) and quarterly report on Form 10-Q for the period ended March 31, 2020 (filed May 3, 2010). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. 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, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
