J.L. French Automotive Castings Announces Completion of Financing

    MINNEAPOLIS--Dec. 27, 2002--J.L. French Automotive Castings, Inc., today announced it has completed a $190 million financing transaction. Concurrent with the financing, the company also completed an amendment to its senior bank credit facility that provides significant covenant flexibility for the next several years.
    Proceeds from the financing were used to retire all of the company's outstanding term loan A and provide liquidity under the company's revolving credit facility. As a result of the repayment of the loan, the company has no scheduled principal repayments until 2006.
    The company has also announced that it made the interest payment on its 11.5 percent senior subordinated notes that is due in December 2002. Payment of this interest is within the 30-day grace period provided for under the indenture governing the notes, ensuring the company remains in compliance with the covenants of the bond indenture.
    "The completion of the financing provides the company with significant flexibility to execute its business plan and implement its growth strategies, both domestically and internationally," said David Hoyte, chief executive officer of the company.
    J.L. French Automotive Castings, Inc., is a leading global designer and manufacturer of highly engineered aluminum die cast automotive parts including oil pans, engine front covers and transmission cases. The company has manufacturing facilities in Sheboygan, WI; Grandville, and Benton Harbor, MI; Glasgow, KY; San Andres de Echevarria, Spain; Saltillo, Mexico; as well as five plants in the United Kingdom. The company is based in Sheboygan, Wis., and has its corporate office in Minneapolis, Minn.

    This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to (i) unexpected delays in completing the company's new financing, (ii) inability of the company to meet is liquidity requirements pending completion of the proposed refinancing, (iii) expected synergies, economies of scale and cost savings from the company's prior acquisitions not being realized or realized within the expected timeframes; (iv) unanticipated difficulties servicing the level of indebtedness at the company, (v) costs or operational difficulties related to integrating the operations of the acquired entities with those of the company being greater than expected; (vi) labor disputes involving the company or its significant customers, (vii) risks associated with conducting business in foreign countries, and (viii) general economic or business conditions affecting the automotive industry, either nationally or regionally, being less favorable than expected.