Perma-Fix Extends Line of Credit and Reduces Interest Rates
ATLANTA, April 4, 2005 /PRNewswire-FirstCall via COMTEX/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) has received an extension on its $25 million asset-based line of credit, through May 31, 2008, as reported in the Company's Form 10K filed with the Securities and Exchange Commission on March 31, 2005.
Dr. Louis F. Centofanti, Chairman and CEO, commented, "Having reduced our debt by over $10 million in 2004, this agreement will further reduce our interest payments and reinforces the progress we continue to make in strengthening 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 an amended agreement, which, among other things, extends the $25 million credit facility through May 31, 2008. The credit facility consists of an $18 million revolving line of credit and a $7 million term loan. The terms of the credit facility remain principally unchanged, with the exception of a 50-basis-point reduction in the variable interest rate on both loans. The increase to the term loan will be handled as a subsequent amendment, subject to the updating of the existing mortgages held by PNC. The Company expects the mortgage updates to be completed in April, with proceeds of approximately $4.0 million to be received shortly thereafter.
As a result of the signed amendment, the Company's balance sheet, as filed in the company's Form 10K with the Securities and Exchange Commission on March 31, 2005, reflects the $8.6 million long-term portion of PNC debt properly classified as long-term debt.
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.
This press release contains "forward-looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements include, but are not limited to, the information concerning the further reduction of our interest payments, strengthening our balance sheet and the completion of the subsequent amendment and receipt of appropriately $4.0 million of additional proceeds. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors, which could cause future outcomes to differ materially from those described in this release including, without limitation, future economic conditions, industry conditions, market conditions, changes within PNC or PNC not abiding by the commitment letter. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
Please visit us on the World Wide Web at http://www.perma-fix.com.
SOURCE Perma-Fix Environmental Services, Inc.
Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix Environmental Services, Inc., +1-404-847-9990; European Investor Contact, Herbert Strauss, European investor relations, +011-43-316-296-316, or herbert@eu-ir.com; or Investor contact, David Waldman or John Heilshorn, both of Lippert-Heilshorn & Associates, +1-404-847-9990, or dwaldman@lhai.com, all for Perma-Fix
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Released April 4, 2005