SANTA ANA, Calif., Dec. 17 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM), the largest global wholesale provider of technology products and supply chain management services, today announced that it has successfully closed the syndication of a three-year unsecured $150 million senior revolving credit facility. The new facility was jointly arranged by Scotia Capital and ABN AMRO Incorporated.
"The new facility was well received by the market, and was oversubscribed by nearly 25 percent," said Thomas Madden, executive vice president and chief financial officer, Ingram Micro Inc. "We have one of the strongest balance sheets in the IT distribution industry and believe that we have sufficient capacity to meet our funding needs for at least the next 12 months; however, the closure of this financing arrangement provides the company with an additional source of long-term capital on attractive terms and conditions in an otherwise difficult credit market."
The new revolving credit facility will be used to support the company's operational needs. Given its strong and diversified liquidity position, the company opted not to take the oversubscription and instead scaled back the participation level of certain banks in the syndicate.
"This facility," added Madden, "complements our existing long-term financing arrangements in both the asset securitization and public debt markets. It also will further strengthen the company's access to multiple sources of long-term capital."
Cautionary Statement for the Purpose of the Safe Harbor Provisions
of the Private Securities Litigation Reform Act of 1995
This press release includes forward-looking statements regarding the expected use of proceeds, sufficiency of the Company's funding capacity, and access to sources of long-term capital. These forward-looking statements are based on current management expectations that involve certain risks which if realized, in whole or in part, could have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: the Company's failure to achieve intended cost reductions or profit improvement objectives under its recently announced profit enhancement program; disruptions in business operations due to reorganization activities; potential material decline in net sales if major suppliers significantly increase the level of business they transact directly with end-users and/or resellers in different product categories, customer segments, and/or geographies; potential decline in net sales and/or gross margins if the Company is not able to pass through to customers the impact of adverse changes in sales terms and conditions with major suppliers; potential termination of a supply or services agreement with a major supplier or customer; dependence on key individuals and inability to retain personnel; the continuation or worsening of the severe downturn in economic conditions (particularly purchases of technology products) and failure to adjust costs in a timely fashion in response to a sudden decrease in demand; losses resulting from significant credit exposure to reseller customers and negative trends in their businesses; continued pricing and margin pressures and intense competition within regional markets and internationally; future terrorist or military actions; reductions in credit ratings and/or unavailability of adequate capital; inability to manage future adverse industry trends; failure of information systems; interest rate and foreign currency fluctuations; adverse impact of governmental controls and actions and political or economic instability on foreign operations; product supply shortages; difficulties and risks associated with integrating operations and personnel in acquisitions; rapid product improvement and technological change and resulting obsolescence risks; and dependence on independent shipping companies.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Exhibit 99.01 of Ingram Micro's Annual Report on Form 10-K for the year ended December 29, 2001; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings. Ingram Micro disclaims any obligation to update forward-looking statements.
About Ingram Micro Inc.
As the world's leading wholesale provider of technology products and supply chain management services, Ingram Micro provides the best way to get technology from the people who make it to the people who use it. Visit www.ingrammicro.com/corp .
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SOURCE Ingram Micro Inc.