SL Industries Obtains Waiver of Default, Evaluates Purchasers' Bids
SL Industries Inc. (Mt. Laurel, NJ) announced that it has obtained a waiver of its default on certain financial covenants in its revolving credit facility from its bank lenders. The credit facility has also been amended, in connection with the grant of the waiver, to require the company to provide its lenders additional collateral. The waiver covers the fiscal quarters ending March 31, 2001, and June 30, 2001.
Under the credit facility as amended, SL Industries is required to pay its lenders certain additional fees, as well as an increased interest rate. The company has also agreed to apply the net proceeds from the sale of any material line of its business to repay loans outstanding under the credit facility, and to reduce the size of the credit facility pursuant to a predetermined formula in connection with any such sale.
Owen Farren, president and CEO, commented, “We are pleased to have received a waiver from the company’s lenders. We will continue to work together as the company addresses the challenges of the current business slowdown.” He added, “The company is presently in the process of evaluating bids from potential purchasers and anticipates inviting several groups to conduct due diligence reviews in June and July. By late July, the company expects to evaluate competing offers and recommend a course of action to maximize value for our shareholders.”