Shiloh Industries Enters Third Amendment of Its Credit Agreement

• Press Release
• Source: Shiloh Industries
• On 8:00 am EDT, Tuesday July 7, 2009

VALLEY CITY, OH--(Marketwire - 07/07/09) - Shiloh Industries, Inc. (NASDAQ:SHLO - News) today announced the completion of the Third Amendment Agreement ("Third Amendment") of the Company's Credit and Security Agreement with a syndication of lenders led by National City Bank as co-lead arranger, sole book runner and administrative agent and The Privatebank and Trust Company as co-lead arranger and syndication agent. The Third Amendment provides the Company with a revolving line of credit of $95,000,000 subject to a borrowing formula requirement. The line of credit matures in July 2012.

Related Quotes

Symbol	Price	Change
SHLO	4.18	-0.15

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The Third Amendment addresses financial covenant issues that the Company was facing as a result of the current business conditions affecting the automotive industry in North America. Specifically, the Third Amendment adjusted certain financial covenants and provides that for the period until November 30, 2009, the inability to meet certain financial covenants will not result in an event of default until November 30, 2009. The Company must also maintain agreed to levels of earnings before interest, taxes, depreciation and amortization as defined for the three months ending at each month end date from June 30,2009 to January 31, 2010.

Theodore K. Zampetis, President and CEO of Shiloh, stated that, "The Third Amendment provides the Company with a period of time to work through the effects of the poor economic climate that has severely impacted the automotive industry in North America, as well as globally. During this time, the Company will be able to determine the effects of the new build schedules of our major customers for August and beyond."

Headquartered in Valley City, Ohio, Shiloh Industries is a leading manufacturer of first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries. The Company has 15 wholly owned subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 600.

 

CONTACT:
Kevin Bagby
Vice President Finance
And Chief Financial Officer
Shiloh Industries, Inc.
(330) 558-2600