Exhibit 99.1
AMERICAN REPROGRAPHICS COMPANY COMPLETES REFINANCING OF
$350 MILLION SENIOR SECURED CREDIT FACILITIES
~
New terms create opportunity to pursue share repurchase ~
WALNUT
CREEK, California (December 6, 2007) — American
Reprographics Company (NYSE: ARP), the nation’s leading
provider of reprographics services and technology, today announced
that it completed the refinancing of its existing credit
facilities. The Company’s new senior secured credit
facilities consist of a five-year $275 million term loan and a
five-year $75 million revolving credit facility, both
increases from the Company’s current $264 million
outstanding term loan and $30 million revolving credit
facility. The new facilities were priced at LIBOR plus 175 basis
points and were provided by a syndicate of international banks led
by J.P. Morgan Securities Inc. and Wachovia Capital Markets LLC, as
Joint Lead Arrangers and Joint Bookrunners, and Bank of America and
Wells Fargo, as Documentation Agents.
The
refinancing provides American Reprographics Company with greater
financial flexibility while allowing for a continuation of the
Company’s strategic acquisition program. The new agreement
also is structured to allow the Company to pursue stock repurchases
of up to $200 million, subject to certain financial
conditions, primarily with proceeds from permitted subordinated
debt.
“We are extremely pleased with this outcome,” stated K.
“Suri” Suriyakumar, President and CEO of American
Reprographics Company. “At a time when the credit markets are
tough and market conditions are volatile, increasing the size of
our facilities with such attractive terms is a testament to the
underlying strength of our business. Moreover the fact that some of
the world’s leading banks have stamped their approval on
these facilities after extensive due diligence and a thorough
review of our financials is very gratifying.”
Mr. Suriyakumar also noted, “Our previous credit
agreement contained restrictions that prohibited the Company from
engaging in any stock repurchase transactions. ARC has been
authorized to repurchase up to $150 million of its common
shares, and the new agreement provides us opportunities to do so,
primarily by issuing subordinated debt.”
“Substantially increasing our credit facility provides more
financial flexibility for future growth initiatives.” said
Jonathan Mather, Chief Financial Officer of American Reprographics
Company. “We are pleased with the pricing of this loan
relative to today’s tight credit market, as well as Standard
& Poor’s improved rating of investment grade BBB- and
Moody&rs
