PRESS RELEASE FROM THE ISSUING COMPANY:
ARC Announces Closing of New Asset Based Credit Facility
WALNUT CREEK, CA -- (Marketwire) -- 01/30/12 --
ARC (NYSE: ARC), the nation's leading document solutions company for the architecture, engineering, and construction (AEC) industry, today announced that it has closed a new asset based senior secured credit facility with Wells Fargo Bank, National Association that was arranged by Wells Fargo Capital Finance, LLC. The committed size of the new facility is $50 million and includes a $10 million "accordion" provision that may be used to increase the borrowing capacity to $60 million. The initial term of the facility is four and a half years and has no financial covenants unless there is less than $10 million of excess availability. The new facility replaces ARC's existing and undrawn $50 million revolving credit line.
"We were very pleased to close this facility with Wells Fargo. I'm gratified that they share our confidence in the future of ARC and its strategy for moving forward," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC. "They have been big supporters over the past year as we have strengthened the capital structure of ARC and built a platform on which to grow."
The interest rate for the facility is set by an availability-based grid starting at LIBOR plus 175 basis points, 25 basis points lower than the Company's previous revolving credit facility.
"This is a great deal for ARC," said John E.D. Toth, ARC's CFO. "It provides us with a strong capital structure to execute the growth of our operations. The Wells Fargo team was very thoughtful in working with us to put together this facility. They appreciated our financial strength, our ability to continually generate positive cash flow regardless of the macro environment, and the unique aspects of our business model. They've been an outstanding partner in the past and have stepped up to the plate for us again. The new facility allows us greater flexibility and far fewer constraints should we choose to use it tactically or in pursuit of our overall corporate strategy."
About ARC (NYSE: ARC)
ARC (American Reprographics Company) is the nation's leading document solutions company providing business-to-business document management technology and services primarily to the architectural, engineering and construction, or 'AEC' industries. The Company also provides document management services to companies in non-AEC industries, such as technology, financial services, retail, entertainment, and food and hospitality.
ARC provides its services through its suite of technology products, a network of hundreds of service centers around the world, and on-site at more than 5,500 customer locations. The Company's service centers are digitally connected as a cohesive network, allowing the provision of services both locally and nationally to more than 120,000 active customers.