TIMCO Aviation Services, Inc. Refinances its Senior Credit Facilities
April 08 2004 - 6:40PM
PR Newswire (US)
TIMCO Aviation Services, Inc. Refinances its Senior Credit
Facilities GREENSBORO, North Carolina, April 8
/PRNewswire-FirstCall/ -- TIMCO Aviation Services, Inc. (BULLETIN
BOARD: TMAS) today announced that it has refinanced allof its
outstanding senior debt and obtained a new revolving line of credit
which substantially increases its available working capital. The
Company announced that it has entered into an agreement with the
CIT Group to provide a $35 million revolving line of credit and a
$6.4 million senior secured term loan. It also announced that the
Company has entered into an agreement with Hilco Capital LP under
which the Company has obtained an $8 million term loan. The new
credit facilities replace a previously existing $30 million
revolving credit facility and a $3.5 million term loan. All amounts
borrowed under the new credit agreements are due on December 31,
2007. Finally, as part of the refinancing, the Company refinanced
all of its previously outstanding debt due to its principal
stockholder. As previously announced, the Company recently
completed the sale of its 545,000 square foot warehouse and office
facility in Miramar, Florida. The proceeds from the sale were used
to repay in full the Company's tax retention operating lease (TROL)
financing arrangement which funded the construction of that
facility. C. Robert Campbell, the Company's Chief Financial
Officer, stated: "We are pleased to be working with the CIT Group
and Hilco Capital under our newly established senior credit
facilities. These credit agreements provide the Company with
significant incremental working capital." TIMCO Aviation Services,
Inc. is among the world's largest providers of fully integrated
aviation maintenance, repair and overhaul (MR&O) services for
major commercial airlines, regional air carriers, aircraft leasing
companies, government and military units and air cargo carriers.
The Company currently operates four MR&O businesses: TIMCO,
which, with its four active locations (Greensboro, NC, Macon, GA,
Lake City, FL and Goodyear, AZ), is one of the largest independent
providers of heavy aircraft maintenance services in the world;
Aircraft Interior Design and Brice Manufacturing, which specialize
in the refurbishment of aircraft interior components and the
manufacture and sale of aftermarket parts and new aircraft seats;
TIMCO Engineered Systems, which provides engineering services both
to our other MR&O operations and to our customers; and TIMCO
Engine Center, which refurbishes JT8D engines and performs on-wing
repairs for both JT8D and CFM-56 series engine. Visit TIMCO online
at http://www.timco.aero/ . This press release contains certain
forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties, which may cause the
Company's actual results in future periods to differ materially
from forecasted results. A number of factors, including those
identified in the Company's Annual Report on Form 10-K for the year
ended December 31, 2002, its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2003, and those identified below, could
adversely affect the Company's ability to obtain these results: the
Company's ability to continue to generate sufficient working
capital from operations to meet its operating requirements and
service its indebtedness, the Company maintaining good working
relationships with its vendors and customers, competitive pricing
for the Company's products and services, the Company's ability to
achieve gross margins at which it can be profitable, including
margins on services the Company performs on a fixed price basis,
competition in the aircraft maintenance, repair and overhaul market
and the impact on that market and the Company of the terrorist
attacks on September 11, 2001, the state of the domestic passenger
airline industry and the financial condition of the Company's
airline customers, the Company's ability to attract and retain
qualified personnel in its business,utilization rates for its
MR&O facilities, the Company's ability to integrate future
acquisitions, the Company's ability to effectively manage its
business, economic factors which affect the airline industry,
generally including the amount of aircraft maintenance outsourced
by various airlines, and changes in government regulations. Certain
of these risks are described in the Company's filings with the
Securities and Exchange Commission (SEC). Copies of the Company's
SEC filings are available from the SEC or may be obtained upon
request from the Company. The Company does not undertake any
obligation to update the information contained herein, which speaks
only as of this date. DATASOURCE: TIMCO Aviation Services, Inc.
CONTACT: Roy T. Rimmer, Jr., Chairman & Chief Executive
Officer, or C. Robert Campbell, Executive Vice President &
Chief Financial Officer, both of TIMCO Aviation Services, Inc.,
+1-336-668-4410 Web site: http://www.timco.aero/
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