LATROBE, Pa., July 6 /PRNewswire-FirstCall/ -- Kennametal Inc. (NYSE: KMT)
announced that it has amended its $500 million revolving bank credit
agreement. The amendment provides additional flexibility with respect to
financial covenants, while maintaining the size and maturity of the facility.
Key aspects of the amendment are as follows:
-- A change in the EBITDA definition to exclude all non-cash charges and
cash restructuring payments up to a defined limit
-- A modification of the leverage covenant threshold
-- An enhancement to selected lender credit protection measures in the
event leverage metrics exceed certain levels
The amendment to the credit agreement will be filed with the U.S.
Securities and Exchange Commission in a Form 8-K today.
"In light of the continuing volatile global economic environment, we
remain focused on maintaining our strong balance sheet and preserving our
liquidity," commented Kennametal Vice President and Chief Financial Officer
Frank Simpkins. "Given the uncertainty of the market, we are proactively
addressing this credit agreement as a means of helping us continue executing
on the company's long-term strategic initiatives."
This release contains "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are statements that do not
relate strictly to historical or current facts. You can identify
forward-looking statements by the fact they use words such as "should,"
"anticipate," "estimate," "approximate," "expect," "may," "will," "project,"
"intend," "plan," "believe" and other words of similar meaning and expression
in connection with any discussion of future operating or financial performance
or event. Forward looking statements in this release concern, among other
things, Kennametal's focus on its balance sheet, preservation of liquidity,
and long term strategic initiatives, and are based on current expectations
that involve inherent risks and uncertainties. Should one or more of these
risks or uncertainties materialize, or should the assumptions underlying the
forward-looking statements prove incorrect, actual outcomes could vary
materially from those indicated. Factors that could cause the actual results
to differ materially from those indicated in the forward-looking statements
are risks and uncertainties related to: the recent downturn in our industry;
global and regional economic conditions; availability and cost of the raw
materials we use to manufacture our products; our ability to protect our
intellectual property in foreign jurisdictions; our foreign operations and
international markets; energy costs; commodity prices; competition;
integrating acquisitions and achieving the expected savings and synergies;
business divestitures; demands on management resources; demand for and market
acceptance of new and existing products; and implementation of restructuring
plans and environmental remediation matters. These and other risks are more
fully described in Kennametal's report on Form 10-Q for the period ending
March 31, 2009 and its other periodic filings with the Securities and Exchange
Commission. We undertake no obligation to release publicly any revisions to
forward-looking statements as a result of future events or developments.
Kennametal Inc. (NYSE: KMT) is a leading global supplier of tooling,
engineered components and advanced materials consumed in production processes.
The company improves customers' competitiveness by providing superior economic
returns through the delivery of application knowledge and advanced technology
to master the toughest of materials application demands. Companies producing
everything from airframes to coal, from medical implants to oil wells and from
turbochargers to motorcycle parts recognize Kennametal for extraordinary
contributions to their value chains. As of the 2008 fiscal year end, customers
bought approximately $2.7 billion annually of Kennametal products and services
-- delivered by our 14,000 talented employees in over 60 countries -- with 50
percent of these revenues coming from outside North America. Visit us at
www.kennametal.com. [KMT-G]
SOURCE Kennametal Inc.
-0- 07/06/2009
/CONTACT: Joy Chandler, Media Relations, +1-724-539-4618, or Quynh
McGuire, Investor Relations, +1-724-539-6559/
/Web Site: http://www.kennametal.com /
(KMT)
CO: Kennametal Inc.
ST: Pennsylvania
IN: MCT MIN MNG
SU: FNC
PR
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7502 07/06/200916:27 EDThttp://www.prnewswire.com
