Perma-Fix Increases Term Loan and Repays $3.5 Million Promissory Note
ATLANTA, June 30 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) today announced that it has completed a new amendment to its Revolving Credit, Term Loan and Security Agreement, which increases its term loan by approximately $4.4 million, to $7.0 million. The Company has used a portion of the additional loan proceeds to prepay in full the $3.5 million unsecured promissory note, which was due in August 2005, and will use the balance as general working capital.
Dr. Louis F. Centofanti, Chairman and CEO, commented, "We are very pleased to have completed this reload of our term loan, which improved our balance sheet and further emphasizes our strong relationship with PNC Bank. This increase to our term loan has enabled us to prepay the $3.5 million unsecured promissory note which was due in full in August of this year and had been reflected as a current liability on our balance sheet."
As previously reported, on March 15, 2005, the Company entered into a commitment letter with PNC Bank (PNC), whereby PNC agreed to renew and extend the agreement, and to increase the term loan back up to $7.0 million. Effective March 25, 2005, the Company and PNC entered into a previous amendment, which, among other things, extended the $25 million credit facility through May 31, 2008. The credit facility consists of an $18 million revolving line of credit and the $7 million term loan. The terms of the credit facility remained principally unchanged, with the exception of a 50 basis point reduction in the variable interest rate on both loans. This new amendment increases the term loan by $4.4 million from its current balance of $2.6 million back up to its initial balance of $7.0 million.
Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The Nuclear Segment provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including the Departments of Energy and Defense and nuclear utilities. The Industrial Segment provides hazardous and non-hazardous waste treatment services for a diverse group of customers including Fortune 500 companies, numerous federal, state and local agencies and thousands of smaller clients. The Company operates eleven major waste treatment facilities across the country.
Please visit us on the World Wide Web at http://www.perma-fix.com .
SOURCE Perma-Fix Environmental Services, Inc.
-0- 06/30/2005
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc., +1-404-847-9990; or J. Todd Atenhan or Valerie
Kimball, vkimball@epochfinancial.com, both of EPOCH Financial Group, Inc.,
+1-888-917-5109; or Herbert Strauss, European investor relations,
+011-43-316-296-316, or herbert@eu-ir.com, all for Perma-Fix/
/Web site: http://www.perma-fix.com /
(PESI)
CO: Perma-Fix Environmental Services, Inc.; PNC Bank
ST: Georgia
IN: ENV
SU: FNC
DS-SP
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7432 06/30/2005 09:02 EDT http://www.prnewswire.com
Released June 30, 2005