Falcon Products Announces Refinancing Commitment Letter With Levine Leichtman Capital Partners
September 17 2004 - 6:21PM
PR Newswire (US)
Falcon Products Announces Refinancing Commitment Letter With Levine
Leichtman Capital Partners $135 Million Package to Provide
Liquidity and Covenant Relief ST. LOUIS, Sept. 17
/PRNewswire-FirstCall/ -- Falcon Products, Inc. (NYSE:FCP), a
leading manufacturer of commercial furniture, today announced that
it has received a $135 million commitment letter from Levine
Leichtman Capital Partners. The Los Angeles-based private equity
firm manages in excess of $1 billion in institutional capital, and
is leading a group of investors in refinancing Falcon's existing
credit facility. Terms of the financing will be disclosed upon
completion of the transaction, which is scheduled on or around
September 30, 2004, contingent only on material adverse changes.
"We're please to have reached this agreement with Levine Leichtman
Capital Partners. The refinancing will provide us with significant
liquidity and covenant relief, as we continue to execute our
turnaround," Franklin A. Jacobs, Chairman and Chief Executive
Officer stated. "This is a strong partner that is known for its
successful investments. We were also pleased to have worked with
Imperial Capital, the investment bankers who assisted us in
successfully achieving this commitment from Levine Leichtman
Capital Partners." "Falcon is the leader in the industry and we're
excited about the opportunity to build on their strengths and take
advantage of improving industry fundamentals," stated Arthur E.
Levine, Founding General Partner of Levine Leichtman Capital
Partners. "We anticipate completing this transaction by month end
and having a long-term relationship with Falcon." Levine Leichtman
Capital Partners is a Los Angeles, California private equity firm
that manages in excess of $1 billion in institutional capital.
Founded in 1984, the investment firm makes structured equity
investments in industry leading middle market companies owned and
managed by entrepreneurs. The firm enhances shareholder value by
providing significant post investment financial assistance to its
portfolio companies. Successful investments by Levine Leichtman
Capital Partners include Media Arts Group Inc., Jon Douglas Real
Estate Services Group, Inc., Consumer Portfolio Services, Inc., the
Quizno's Corporation and CiCi's Pizza, Inc. Falcon Products, Inc.
is the leader in the commercial furniture markets it serves, with
well-known brands, the largest manufacturing base and the largest
sales force. Falcon and its subsidiaries design, manufacture and
market products for the hospitality and lodging, food service,
office, healthcare and education segments of the commercial
furniture market. Falcon, headquartered in St. Louis, Missouri,
currently operates 8 manufacturing facilities throughout the world
and has approximately 2,100 employees. Safe harbor statement under
the Private Securities Litigation Reform Act of 1995: Statements
contained in this news release which are not historical facts are
forward-looking statements, which involve risks and uncertainties
which could impact future financial performance. Factors which
could cause future performance to differ from those anticipated by
these forward-looking statements include, but are not limited to,
the ability of the Company to refinance its senior credit facility
or obtain waivers of noncompliance with financial covenants on
terms reasonable to the Company, if at all, the ability of the
Company to service its debt obligations and satisfy the covenants
in its loan obligations, the loss of key customers or suppliers
within specific industries, the availability or cost of raw
materials, increased competitive pricing pressures reflecting
industry conditions, the general demand for products, general
economic conditions, economic conditions in the markets served by
the Company, and other factors. Additional cautionary statements
regarding other risk factors that could have an effect on future
performance of the Company are described in Falcon's periodic
filings with the Securities and Exchange Commission. Although
Falcon believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, Falcon can give no
assurance that its expectations will be attained. Any forward-
looking statements represent the best judgment of Falcon as of the
date of this release. Falcon disclaims any obligation to update any
forward-looking statements. FOR FURTHER INFORMATION AT THE COMPANY:
Gene Fleetwood 9387 Dielman Industrial Drive St. Louis, MO 63132
(314) 991-9200 DATASOURCE: Falcon Products, Inc. CONTACT: Gene
Fleetwood of Falcon Products, Inc., +1-314-991-9200
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