MONTREAL and SARASOTA, Florida, June 14, 2021 (GLOBE NEWSWIRE) – Intertape Polymer Group Inc. (TSX: ITP) (âIPGâ or the âCompanyâ) today announced a new credit facility of $ 600 million over five years (the âCredit Facilityâ) pursuant to an amendment to its existing credit agreement with a syndicated loan group led by Bank of America, NA, as administrative agent, and BofA Securities, Inc., BMO Capital Markets Corp., JPMorgan Chase Bank, NA, The Toronto-Dominion Bank and Capital One, National Association, as Joint Leaders and Joint Bookkeepers. The credit facility amends and extends the Company’s previous $ 600 million credit facility which was scheduled to mature in June 2023. All dollar amounts are denominated in US dollars, unless otherwise specified.
âIPG is a structurally different company today than it was five years ago,â said Greg Yull, President and CEO of IPG. âAn important, but often overlooked, aspect of our fundamentals is the conservative capital structure we have established and which has served us extremely well during the uncertainty of 2020. This new credit agreement further strengthens our strategy with a flexible framework to attractive conditions to support our expansion and growth plans in 2021 and beyond.
The credit facility consists of a revolving credit facility of $ 600 million and includes an additional accordion element of $ 300 million, which will allow the Company to increase the limit of this facility (subject to the terms of the agreement. credit and lender approval) to $ 900 million if required. The credit facility matures on June 12, 2026 and bears an interest rate based, at the Company’s option, on the London Interbank Offered Rate (or a successor rate), the Fed funds rate or the prime rate of Bank of America plus a gap. The credit facility provides a more favorable covenants structure and increased flexibility to the Company compared to the previous credit facility. The credit facility is expected to fund capital expenditures, business acquisitions, working capital, share buybacks and other general business activities.
About Intertape Polymer Group Inc.
Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of self-adhesive and water-activated tapes based on paper and film, shrink and stretch films, protective packaging, woven and non-woven products and packaging machinery. for industrial and commercial use. Based in Montreal, Quebec and Sarasota, Florida, the Company employs approximately 3,700 employees with operations in 31 locations, including 21 manufacturing plants in North America, four in Asia and one in Europe. For more information about the Company, visit www.itape.com.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, “forward-looking statements”), which are based on the protections under that law for forward-looking statements. All statements other than statements of historical fact included in this press release, including statements regarding: the ability to perform the accordion function of the Credit Facility; the Company’s intended use of the credit facility; and the expected effects of the Credit Facility; may constitute forward-looking statements. These forward-looking statements are based on the current beliefs, assumptions, expectations, estimates, forecasts and projections made by the management of the Company. These forward-looking statements are based on current beliefs, assumptions, expectations, estimates, forecasts and projections made by the management of IPG. Words such as “may”, “will”, “should”, “expect”, “continue”, “intend”, “estimate”, “anticipate”, “plan”, “foresee” , “Believe” or “seek” or negative aspects of these terms or variations thereof or similar terminology are intended to identify such forward-looking statements. Although IPG believes that the expectations reflected in these forward-looking statements are reasonable, these statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual results to differ materially from what is expressed, implied or intended in these forward-looking statements, and these differences may be material. These statements are also subject to assumptions regarding, among other things: the Company’s ability (or lack thereof) to access the accordion function of the credit facility; business conditions and the growth or decline of the Company’s industry, the Company’s customer industries and the economy in general, including as a result of the impact of COVID-19; the expected benefits of the Company’s entirely new projects and the expansion of manufacturing facilities; the impact of fluctuations in raw material prices and transport costs; the expected benefits of the Company’s acquisitions and partnerships; the expected benefits of the Company’s capital expenditures; the quality and commercial reception of the Company’s products; the anticipated business strategies of the Company; the risks and costs inherent in litigation; legal and regulatory developments, including with regard to COVID-19; the Company’s ability to maintain and improve quality and customer service; expected trends in the business of the Company; expected cash flows from the Company’s operations; the availability of funds under the credit facility; the flexibility of the Company to allocate capital following the recent offering of senior unsecured notes; and the Company’s ability to continue to control its costs. The Company cannot guarantee that these estimates and expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements. For more information about the important factors that could cause actual results to differ materially from those expressed in these forward-looking statements and other risks and uncertainties, and the assumptions underlying the forward-looking statements, we encourage you to read “Article 3 Key Information – Risk Factors”, “Article 5 Analysis and Operational and Financial Outlook (Discussion Management and Analysis)” and statements located elsewhere in the IPG Annual Report on Form 20-F for the fiscal year ended December 31, 2020 and other statements and factors contained in the filings with Canadian securities regulators and the United States Securities and Exchange Commission. Each of these forward-looking statements speaks only as of the date of this press release. IPG will not update these statements unless required by applicable securities laws.