BREED Technologies, Inc. Obtains Waiver of Financial Covenants
30 June 1999
BREED Technologies, Inc. Obtains Waiver of Financial Covenants
LAKELAND, Fla.--June 30, 1999--BREED Technologies, Inc. ("BREED") , one of the world's largest occupant restraints suppliers, announced today that the Company has obtained a waiver of certain financial covenants related to its senior credit facility. The waiver extends through October 12, 1999.Terms of the waiver impose certain obligations upon the Company during the waiver period which, if not complied with, could result in a termination of the waiver and a default under the credit facility. These obligations include, among other conditions, increased interest rates for periods after August 1999, the implementation and effectuation of a capital transaction program to explore strategic alternatives for the business, increased reporting requirements to the Company's lenders, and additional lenders fees to be paid by the end of the waiver period (subject to extension under certain circumstances). The Company stated that certain of the conditions are consistent with actions already contemplated by Company management, and that management believes that all of the conditions are achievable. In addition, the waiver permits the Company to utilize net proceeds from the sale of certain assets for general corporate purposes, rather than the repayment of debt as required under the credit facility.
BREED also confirmed that it has engaged the investment banking firm of Wasserstein Perella & Co., headquartered in New York, to advise its Board of Directors regarding the Company's capital transaction program.
The statements contained in this press release that are not purely historical, including statements regarding BREED's objectives, expectations, hopes, intentions, beliefs or strategies regarding the future, are "forward-looking" statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to certain risks and uncertainties that could cause results to differ materially from those projected. No assurance can be given that BREED will be able to comply with the conditions of the waiver or obtain any further relief from the lenders at the expiration of the waiver period in which case, the lenders would be entitled to exercise the remedies provided under the credit facility. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward statements which are based on current expectations.