Omega Protein Announces New $35 Million Credit Facility
22 Ottobre 2009 - 10:30PM
PR Newswire (US)
HOUSTON, Oct. 22 /PRNewswire-FirstCall/ -- Omega Protein
Corporation (NYSE:OME), the nation's leading producer of Omega-3
fish oil and specialty fish meal products, today announced that it
has entered into a new $35 million senior secured credit facility
with Wells Fargo Bank, National Association. The new credit
facility consists of a 3-year revolving credit facility of up to
$35 million, including a $7.5 million sub-limit for the issuance of
standby letters of credit, and is secured by substantially all of
the Company's assets except for those already pledged in connection
with existing federal Fisheries Finance Program loans. The new
credit facility replaces the Company's existing credit facility
with a syndicate of banks led by Bank of America, N.A, under which,
just prior to the closing date, $11.4 million was outstanding under
a term loan and $2.8 million was outstanding under letters of
credit. The Company prepaid the term debt at closing and the
letters of credit were transferred to Wells Fargo Bank. Joe von
Rosenberg, Chairman of the Board and Chief Executive Officer of
Omega Protein, commented: "This new credit facility provides the
Company with more favorable terms than the old facility and should
reduce our future borrowing costs. We are pleased with the new
relationship with Wells Fargo." In connection with the termination
of the Company's existing credit facility, the Company expects to
incur an approximate $0.4 million charge in the fourth quarter of
2009 for the write-off of loan origination and related fees.
Additionally, the early termination of the existing credit facility
renders the associated interest rate swaps to be ineffective which
results in approximately $1.4 million to be recognized as an
interest expense in the third quarter of 2009. About Omega Protein
Omega Protein Corporation is the nation's largest manufacturer of
heart-healthy fish oils containing Omega-3 fatty acids for human
consumption, as well as specialty fish meals and fish oil used as
value added ingredients in aquaculture, swine and other livestock
feeds. Omega Protein makes its products from menhaden, an Omega-3
rich fish that is not utilized as seafood, but which is abundantly
available along the U.S. Gulf of Mexico and Atlantic Coasts.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: The statements
contained in this press release that are not historical facts are
forward-looking statements that involve a number of risks and
uncertainties. The actual results of future events described in any
of these forward-looking statements could differ materially from
those stated in the forward-looking statements. Important factors
that could cause actual results to be materially different from
those forward-looking statements include, among others: (1) the
Company's ability to meet its raw material requirements through its
annual menhaden harvest, which is subject to fluctuations due to
natural conditions over which the Company has no control, such as
varying fish population, fish oil yields, adverse weather
conditions and disease; (2) the impact of worldwide supply and
demand relationships on prices for the Company's products; (3)
Omega Protein's expectations regarding demand for OmegaPure®
proving to be incorrect; (4) fluctuations in the Company's
quarterly operating results due to the seasonality of the Company's
business and its deferral of inventory sales based on worldwide
prices for competing products; and (5) the Company's estimate of
write-offs and expenses are incorrect. These and other factors are
described in further detail in Omega's filings with the Securities
and Exchange Commission, including its reports on Form 10-K,
Form10-Q and Form 8-K. The Company also posts its latest internally
generated price list for various products on its Company website,
http://www.omegaproteininc.com/. Pricing and product availability
information disclosed in the price list are subject to change or
discontinuance without prior notice, and the Company undertakes no
obligation to update such information." DATASOURCE: Omega Protein
Corporation CONTACT: Investor Relations of Omega Protein
Corporation, +1-713-623-0060 Web Site:
http://www.omegaproteininc.com/
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