DNK.L Regulatory News (DNK)

19 Jun 2007 13:30

Danka Business Systems PLC19 June 2007 For Immediate Release 19 June 2007 Danka Business Systems PLC ("Danka" or "the Company") Danka Announces Refinancing Agreement Totaling $145 million with GE Corporate Lending Danka Business Systems PLC (LSE: DKN; NASDAQ: DANKY) today announced that it hasentered into an agreement with GE Corporate Lending for a new senior securedcredit facility totaling $145 million that would be used, together with theproceeds of the Company's previously completed sale of its European operations,to significantly reduce and refinance the Company's existing indebtedness. Upon completion of this financing, the Company expects to reduce its overallindebtedness to approximately $120 million, down from $254 million. It will alsoreduce annual interest expense to approximately $13 million from the current $29million. "Today's agreement with GE Corporate Lending represents another significantmilestone in the reshaping of Danka," said A.D. Frazier, Chairman and ChiefExecutive Officer. "This credit facility, along with the other importantfinancial and operational steps we have taken in the past year, will provideDanka with the appropriate long-term flexibility from which to grow ourbusiness. It also reaffirms the Company's commitments to our valued vendors andexisting customers, and significantly enhances the ability of our talented teamof employees to compete for and win new customers, as well as deliver evengreater value." The new credit facility includes a $40 million Senior Secured Revolving CreditFacility, a $60 million Senior Secured Term Loan and a $45 million Second LienLoan. Completion of the financing is subject to a number of customary closingconditions. The Company expects the transaction to close by June 22, 2007.Representing Danka in the transaction was the investment banking firm HoulihanLokey and the law firm Skadden, Arps, Slate, Meagher & Flom. - ends - For further information please contact: Danka Business Systems PLCCheley Howes, Danka Investor Relations +1 727 622 2760Louis Kritzinger, Danka London 0207 605 0150 Weber Shandwick FinancialGeorgia Dempsey 0207 067 0749 About DankaDanka delivers value to clients by using its expert technical and professionalservices to implement effective document information solutions. As one of theleading independent providers of enterprise imaging systems and services, thecompany enables choice, convenience, and continuity. Danka's vision is toempower customers to benefit fully from the convergence of image and documenttechnologies in a connected environment. This approach will strengthen thecompany's client relationships and expand its strategic value. For moreinformation, visit Danka's web site at www.danka.com. About GE Corporate LendingWith $14 billion in assets, GE Commercial Finance Corporate Lending is one ofNorth America's largest providers of asset-based, cash flow, structured financeand other capital solutions for mid-size and large companies. From over 30offices throughout the U.S. and Canada, Corporate Lending specializes in servingthe unique needs of borrowers seeking $20 million to $2 billion and more forworking capital, growth, acquisitions, project finance and turnarounds. Visitwww.gelending.com/clnews for more information. Certain statements contained in this press release, including statements relatedto Danka's future business and financial performance, are forward-looking. Suchstatements reflect the current views of Danka with respect to future events andare subject to certain risks, uncertainties and assumptions that could causeactual results to differ materially from those reflected in the forward-lookingstatements. Readers are cautioned not to place undue reliance on these forwardlooking statements, which reflect management's analysis only as of the date theyare made. Danka is a registered trademark and Danka @ the Desktop is a trademark of DankaBusiness Systems PLC. All other trademarks are the property of their respectiveowners. This information is provided by RNS The company news service from the London Stock Exchange