Universal Power Group Secures Credit Facility with Wells Fargo
Includes $30 Million Credit Line and $10 Million Accordion Feature
On Friday December 18, 2009, 8:00 am
CARROLLTON, Texas--(BUSINESS WIRE)--Universal Power Group, Inc. (NYSE Amex: UPG), a Texas-based distributor and supplier of batteries and related power accessories and provider of third-party logistics, today announced that the Company has completed a new, expanded $30-million credit agreement with Wells Fargo & Company (NYSE: WFC - News).
The facility includes an accordion feature that enables the $30 million credit line to be increased by an additional $10 million. The agreement also lowers the Company’s overall cost of capital and provides for greater flexibility to grow the business. The agreement expires on July 30, 2013, which is a year longer than the expiration date of the Company’s former credit agreement. The Company maintains a credit facility to finance short-term demands for working capital and needs associated with its long-term growth initiatives.
“We are pleased to begin our new partnership with Wells Fargo on a positive note,” said Ian Edmonds, UPG’s President and Chief Executive Officer. “In a time of continued tight credit in the broad economy, Wells Fargo’s willingness to partner with UPG says a lot about the strength of our Company and our prospects for future growth. The new facility offers UPG up to $40 million to fund our operations and pursue new avenues of growth.”
Concurrent with the new credit facility, the Company also eliminated a $6 million interest rate hedge, which the company expects will contribute to interest cost savings over the term of the agreement.
“Wells Fargo has remained open for business throughout the credit crisis and continues to prudently lend to creditworthy companies,” said Clint Bryant, a Commercial Banking relationship manager for Wells Fargo who is based in Plano, Texas. “Working with UPG, we are providing the financial capital that supports businesses and our economy. We take pride in partnering with sound, successful and growing companies in our markets, and we look forward to future success with UPG.”
About Universal Power Group, Inc.
Universal Power Group, Inc. (NYSE Amex: UPG), is a leading provider of third-party logistics and supply chain management services, and a supplier and distributor of batteries and power accessories. UPG's supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly, coordination of battery recycling efforts, and product design and development. UPG's range of product offerings includes proprietary brands of industrial and consumer batteries of all chemistries, chargers, jump-starters, 12-volt accessories, solar and security products. For more information, please visit the UPG website at www.upgi.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission. Historical financial results are not necessarily indicative of future performance.
Contact:
Universal Power Group, Inc.
Mimi Tan, SVP, 469-892-1122
tanm@upgi.com
or
Investor Relations:
Lambert, Edwards & Associates
Jeff Tryka, 616-233-0500
jtryka@lambert-edwards.com
