| Michel Salbaing |
Printing company Mail-Well amended and restated its $300 million revolver to extend its maturity before the due date approached. Both market conditions and Mail-Well's improved credit profile made it an ideal time to do the amendment, according to Michel Salbaing, Mail-Well's senior v.p. and cfo. The company's credit profile was enhanced through improved operations, management of working capital, generation of cash flow and through the extension of the long-term portion of the capital structure, he added. "At this time, we thought it would be a good time to prolong the existing facility that we had, which was due June 2005," Salbaing said. "We thought that since we were a year-and-three-months from that maturity date that it was time to extend the maturity." The company has two bond issues, one due in 2012 and the other due in 2013. "Everything is long dated now," he said. The revolver matures in June 2008.
Bank of America led the amendment and was the lead on the previous facility. B of A provides the company with a "good level of service and an understanding of our business," he added. The facility is priced on a grid, and the new spread drops 25 basis points from the previous agreement. Salbaing declined to comment on the exact pricing of the facility.