Flowserve Obtains Lender Consents for Enhanced Financing Flexibility
Flowserve said it has obtained consents from its major lenders that enhance the company's flexibility under its credit agreements.
Among other things, these consents amend certain lending covenants to permit the possible issuance by the company of new subordinated or senior unsecured debt to call and prepay its outstanding 12.25% Senior Subordinated Notes, which are first callable in August 2005. These consents also extend until Sept. 30, 2005, the company's covenant requirement for delivering to lenders its 2004 audited financial statements.
The company previously announced that it repaid about $210 million of debt in 2004 and more than $600 million over the past three years.
"We are pleased with the support and confidence our lenders have shown us in granting these consents," said Flowserve Chief Financial Officer Mark A. Blinn. "These provide us with considerable flexibility as we continue our work to finalize our 2004 financial statements, strengthen our financial controls and further improve our capital structure."
These consents will be more fully described in Form 8-K reports that the company plans to file with the Securities and Exchange Commission.
Flowserve Corp. (NYSE:FLS) is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
Source: Flowserve Corporation