RANCHO DOMINGUEZ, Calif., July 13, 2006 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced that the closings for its previously disclosed intention to issue $200.0 million (principal amount) of senior guaranteed notes and to enter into a new senior credit facility were effected today. The obligations under the notes and the credit facility are guaranteed by various UTi subsidiaries.
The notes, which bear interest at 6.31%, have a final maturity of 5 years and an average life of 3.5 years and the company is to make six equal semi-annual principal payments of approximately $33.33 million each, beginning in January 2009.
The new senior credit facility has a term of 3 years and is comprised of two separate facilities. The first facility is referred to as the "Global Facility" and consists of a credit facility in the amount of $150.0 million (including a $25.0 million swingline facility) and the second facility, which is referred to as the "South African Facility," consists of a credit facility in the amount of $100.0 million and is intended to be used only in South Africa. The senior credit facility allows for an aggregate of $250.0 million of borrowings, guarantees and letters of credit. No UTi subsidiary incorporated in South Africa may be a borrower or guarantor under the Global Facility.
A majority of the net proceeds from the sale of the notes will be used to repay the company's $150.0 million short-term credit facility which UTi obtained in connection with its March 2006 acquisition of Market Industries, Ltd. The new senior credit facility will replace substantially all of the company's other existing working capital credit facilities.
"We are extremely pleased to have completed these important steps which provide us with greater financial flexibility as we continue our journey toward providing our clients with a complete set of integrated logistics solutions around the globe," said Lawrence R. Samuels, chief financial officer of UTi Worldwide.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' global supply chains.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's ability to provide a complete global set of integrated logistics solutions to clients. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including inventory build-up, economic slowdowns and consumer confidence; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; the success and effects of new strategies; disruptions caused by conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.