$150 Million in Long-Term Debt and Up to $200 Million in Revolving Credit
NEENAH, Wis., April 4, 2008 /PRNewswire-FirstCall/ — Plexus Corp. (NASDAQ:PLXS) today announced that it has successfully arranged the debt facilities planned in connection with its financial recapitalization announced February 25, 2008.
The Company entered into an unsecured credit agreement with an expanded bank group, Bank of Montreal acting as administrative agent, which allows the Company to borrow $150 million in term loans and up to $200 million in revolving loans. The $150 million term loan was immediately funded, and $100 million is currently available for revolving loans; that amount may be increased by an additional $100 million in revolving credit under certain circumstances. This agreement expires April 4, 2013 and amends and restates the Company’s previous unsecured revolving credit facility which was due to expire on January 12, 2012.
The Company will use the proceeds of the $150 million term loan to fund the majority of its previously announced $200 million share repurchase, and will utilize the $100 million in currently committed revolving credit for general corporate purposes.
“We’re very pleased with the reception our transaction has received in the marketplace, and with the support shown for Plexus Corp., not only by our existing bank group but by a number of major banks new to the relationship as well,” said Ginger Jones, Chief Financial Officer.
About Plexus Corp. – The Product Realization Company
Plexus (http://www.plexus.com/) is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.
The Company’s unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality.
Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia.
Safe Harbor and Fair Disclosure Statement
The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including “believe,” “expect,” “intend,” “plan,” “anticipate,” “goal,” “target” and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. Plexus’ future performance is subject to many other factors, including, but not limited to: the economic performance of the electronics, technology and defense industries; market reaction to previously announced share repurchase programs; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders in the defense market sector and the uncertainty of defense appropriations and spending; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; the Company’s ability to secure new customers and maintain its current customer base; the risks of concentration of work for certain customers; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our expansions in Asia; the adequacy of restructuring and similar charges as compared to actual expenses; the degree of success and the costs of efforts to improve the financial performance of its Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; the effect of general economic conditions and world events (such as increases in oil prices, terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company’s Securities and Exchange Commission filings — in particular in “Risk Factors” in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended December 29, 2007.
First Call Analyst:
FCMN Contact:
Source: Plexus Corp.
CONTACT: Ginger Jones, Vice President, Chief Financial Officer of Plexus
Corp., +1-920-751-5487, ginger.jones@plexus.com
Web site: http://www.plexus.com/
