Maytag Enters Into $600 Million Credit Agreement
November 10 2005 - 8:55AM
PR Newswire (US)
NEWTON, Iowa, Nov. 10 /PRNewswire-FirstCall/ -- Maytag Corporation
(NYSE:MYG) announced today it has entered into a new $600 million,
five-year, senior-secured revolving credit agreement. The new
credit facility replaces the existing $300 million revolving credit
agreement. (Logo:
http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO ) "This
agreement is a positive development for Maytag," said George Moore,
executive vice president and CFO. "The new credit agreement should
provide us with substantially more financial flexibility, including
capacity to meet all 2006 debt maturities, as well as the ability
to operate and restructure our business." Borrowings under the
agreement, which was not drawn down at closing other than to
support outstanding letters of credit, are secured by accounts
receivable and inventory of Maytag and certain Maytag subsidiaries.
Under the terms of the agreement, Maytag also has the ability to
increase the new facility by $150 million to $750 million. The new
credit facility was co-arranged by J.P. Morgan Securities, Inc. and
Citigroup Global Markets, Inc. Maytag Corporation is a $4.8 billion
home and commercial appliance company focused in North America and
in targeted international markets. The corporation's primary brands
are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R), Dixie-Narco(R) and
Jade(R). Maytag Additional Information This document includes
statements that do not directly or exclusively relate to historical
facts. Such statements are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements speak only as of this date and include statements
regarding anticipated future financial operating performance and
results. These statements are based on the current expectations of
management of Maytag. There are a number of risks and uncertainties
that could cause actual results to differ materially from the
forward-looking statements included in this document. For example,
with respect to the transaction with Whirlpool (1) Maytag may be
unable to obtain shareholder approval required for the transaction;
(2) conditions to the closing of the transaction may not be
satisfied or the merger agreement may be terminated prior to
closing; (3) Maytag may be unable to obtain the regulatory
approvals required to close the transaction, or required regulatory
approvals may delay the transaction or result in the imposition of
conditions that could have a material adverse effect on Maytag or
cause the parties to abandon the transaction; (4) Maytag may be
unable to achieve cost-cutting goals or it may take longer than
expected to achieve those goals; (5) the transaction may involve
unexpected costs or unexpected liabilities; (6) the credit ratings
of Maytag or its subsidiaries may be different from what the
parties expect; (7) the businesses of Maytag may suffer as a result
of uncertainty surrounding the transaction; (8) the industry may be
subject to future regulatory or legislative actions that could
adversely affect Maytag; and (9) Maytag may be adversely affected
by other economic, business, and/or competitive factors. Additional
factors that may affect the future results of Maytag are set forth
in its filings with the Securities and Exchange Commission ("SEC"),
which are available at http://www.maytagcorp.com/ . Maytag
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional Information Relating to the
Proposed Merger and Where to Find It Whirlpool and Maytag have
filed a preliminary prospectus/proxy statement with the SEC in
connection with the proposed transaction. Investors are urged to
read the preliminary prospectus/proxy statement, and any other
relevant documents filed or to be filed by Whirlpool or Maytag,
including the definitive prospectus/proxy statement when available,
because they contain or will contain important information. The
preliminary prospectus/proxy statement is, and other documents
filed by Whirlpool and Maytag with the SEC are, available free of
charge at the SEC's website ( http://www.sec.gov/ ) or from
Whirlpool by directing a request to Whirlpool Corporation, 2000
North M-63, Mail Drop 2800, Benton Harbor, MI 49022-2692,
Attention: Larry Venturelli, Vice President, Investor Relations.
Neither this communication nor the preliminary prospectus/proxy
statement constitutes an offer to sell or the solicitation of an
offer to buy Whirlpool common stock in any jurisdiction outside the
United States where such offer or issuance would be prohibited --
such an offer or issuance will only be made in accordance with the
applicable laws of such jurisdiction. Whirlpool, Maytag and their
respective directors, executive officers, and other employees may
be deemed to be participating in the solicitation of proxies from
Maytag stockholders in connection with the approval of the proposed
transaction. Information about Whirlpool's directors and executive
officers is available in Whirlpool's proxy statement, dated March
18, 2005, for its 2005 annual meeting of stockholders. Information
about Maytag's directors and executive officers is available in
Maytag's proxy statement, dated April 4, 2005, for its 2005 annual
meeting of stockholders. Additional information about the interests
of potential participants is included in the preliminary
prospectus/proxy statement Whirlpool and Maytag filed with the SEC.
Media Contact: John Daggett Maytag Corporate Communications (641)
787-7711 http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
http://photoarchive.ap.org/ DATASOURCE: Maytag Corporation CONTACT:
John Daggett of Maytag Corporate Communications, +1-641-787-7711,
Web site: http://www.maytagcorp.com/
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