Noble International, Ltd. Announces Increase in Credit Facility
22 December 1998
Noble International, Ltd. Announces Increase in Credit FacilityBLOOMFIELD HILLS, Mich., Dec. 22 -- Noble International, Ltd. ("Noble") (Amex: NIL) today announced that on December 17, 1998, it amended its Amended and Restated Loan Agreement with Comerica Bank to provide for an increase in its revolving line of credit facility to $60 million (the "New Comerica Line"). The New Comerica Line expires December 31, 2000, is secured by a first priority security interest in the assets of Noble and its subsidiaries and provides for the issuance of up to $1 million in standby or documentary letters of credit. The New Comerica Line replaces Noble's and its subsidiaries' approximately $50 million of prior existing revolving credit facilities. Noble paid an up front fee of $18,750 to Comerica in connection with the New Comerica Line. The New Comerica Line may be utilized for general corporate purposes, including working capital and acquisition financing. The New Comerica Line provides Noble with borrowing options for advances under the facility of either a "Eurocurrency Rate" (Comerica's Eurodollar rate as adjusted for reserves and other regulatory requirements) or a "Base Rate" (1% below Comerica's Prime Rate of Interest). The New Comerica Line is subject to customary financial and other covenants including, but not limited to, limitations on payment of dividends, limitations on consolidations, and mergers and sales of assets. Lloyd Jones, Noble's President, stated "We are pleased with the confidence that Comerica has shown in our business and management with this increase in our credit facility. The increased availability will help us meet our capital needs as we grow into the future and meet our customer demands." Certain statements in this news release maybe "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements.