2012-12-17 22:28:07 -
News release
---------------AT THE COMPANY---------------
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
FOR IMMEDIATE RELEASE
MONDAY, DECEMBER 17, 2012
UFPI announces successful issuance of long-term debt and new acquisition
agreement
--Loan proceeds totaling $75 million to be used to refinance existing notes;
provide expansionary and general business capital--
--Purchase of Minn.-based Custom Caseworks expands industrial capabilities--
GRAND RAPIDS, Mich., Dec. 17, 2012 - Universal Forest Products, Inc. (NASDAQ:
UFPI) today announced that it has successfully negotiated loan agreements with
Prudential Investment Management, Inc. totaling $75 million, which will be used
to refinance $40 million of existing notes and for expansionary capital,
including the acquisition of Custom Caseworks, Inc., a manufacturer of
commercial casework, fixtures and related products.
"These are exciting times for the companies of Universal. With these successful
transactions, we've added yet another thriving company to our business
portfolio, and we're armed with the capital necessary to continue to grow our
company and our opportunity," said CEO Matthew J. Missad.
The notes negotiated with Prudential include unsecured ten-year Series A Senior
Notes at 3.89 percent interest totaling $35 million, and unsecured 12-year
Series B Senior Notes at 3.98 percent interest totaling $40 million. Proceeds
from the issuance of the notes will be used by the Company to refinance its
existing Series 2002-A Senior Notes totaling $40 million, which carried a 6.16
percent interest rate, and for general corporate purposes.
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The notes allow the Company to, among other things, pay down its revolving
credit line used for the November 2012 purchase of Washington-based Nepa Pallet
and Container Co., and provide capital for the pending purchase of Custom
Caseworks, Inc., which is expected to close no later than December 31, 2012.
"Our Chief Financial Officer Mike Cole and our finance team did a great job
putting this credit facility together," Missad said. "Thanks to their efforts we
have locked in long-term debt at very favorable rates."
Founded in 1994 and located in Sauk Rapids, Minn., Custom Caseworks is a
manufacturer of
point-of-purchase and commercial store fixtures, commercial casework and office
furniture, laminated and painted wood panels, and OEM-manufactured and private
label products. Its
products and processes are strong complements to Universal's growing industrial
products and customer base. Custom Caseworks has annual sales of nearly $7
million, and recently added capacity for future growth.
The addition of Custom Caseworks furthers Universal's strategic objective to
expand into new, value-added product lines for the industrial market, and adds
capabilities to Universal's offerings.
"We are excited to have the opportunity to add Custom Caseworks to the Universal
family of companies," Missad said. "John Lindholm (Custom Caseworks President
and CEO) has grown an impressive company and team, and we're honored to bring
them into the Universal fold and to work together to create new opportunities
and achieve great success based on our synergies."
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital,
management and administrative resources to subsidiaries that design, manufacture
and market wood and wood-alternative products for DIY/retail home centers and
other retailers, structural lumber products for the manufactured housing
industry, engineered wood components for residential and commercial
construction, specialty wood packaging and components for various industries,
and forming products for concrete construction. The Company's consumer products
subsidiary offers a large portfolio of outdoor living products, including wood
composite decking, decorative balusters, post caps and plastic lattice. Its lawn
and garden group offers an array of products, such as trellises and arches, to
retailers nationwide. Universal's subsidiaries also provide framing services for
the site-built construction market. Founded in 1955, Universal Forest Products
is headquartered in Grand Rapids, Mich., with operations throughout North
America. For more about Universal Forest Products, go to www.ufpi.com.
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This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act, as amended, that are based on
management's beliefs, assumptions, current expectations, estimates and
projections about the markets we serve, the economy and the Company itself.
Words like "anticipates," "believes," "confident,"
"estimates," "expects,"
"forecasts," "likely," "plans," "projects,"
"should," variations of such words,
and similar expressions identify such forward-looking statements. These
statements do not guarantee future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict with regard to
timing, extent, likelihood and degree of occurrence. The Company does not
undertake to update forward-looking statements to reflect facts, circumstances,
events, or assumptions that occur after the date the forward-looking statements
are made. Actual results could differ materially from those included in such
forward-looking statements. Investors are cautioned that all forward-looking
statements involve risks and uncertainty. Among the factors that could cause
actual results to differ materially from forward-looking statements are the
following: fluctuations in the price of lumber; adverse or unusual weather
conditions; adverse conditions in the markets we serve; government regulations,
particularly involving environmental and safety regulations; and our ability to
make successful business acquisitions. Certain of these risk factors as well as
other risk factors and additional information are included in the Company's
reports on Form 10-K and 10-Q on file with the Securities and Exchange
Commission.
# # #
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originality of the information contained therein.
Source: Universal Forest Products, Inc. via Thomson Reuters ONE
[HUG#1665781]
