American Safety Razor Co. Receives Refinancing Proposal
CEDAR KNOLLS, NJ - American Safety Razor Company LLC (ASR), an innovator in the production of blade products and currently the fourth largest manufacturer and distributor of wet shaving razors and blades, announced that it has received a refinancing proposal from a major financial institution working in conjunction with a large group of its second lien lenders. The transaction involves only the company’s U.S. and Puerto Rican operations; its other non-U.S. operations and entities are not borrowers under the debt that is being refinanced.
The company said that both its wet shaving and industrial businesses are performing well in 2010 despite challenging economic conditions. “We’re continuing to invest in innovations and new products to grow both our consumer wet shaving and industrial blades businesses,” says Andrew Bolt, chief financial officer and executive vice president. The company is currently making its largest investment ever to develop and launch its next generation shaving technology in early 2011.
The company said that its lenders have extended covenant waiver agreements that would allow the company to pursue the refinancing. The company is also reviewing a backup proposal from its first lien lenders should the second lien proposal not be consummated. Both alternatives would have no operational impact on the company or its stakeholders.
“We are very encouraged by the quality of these proposals and general direction of these discussions. We are fortunate that our lenders have the sophistication and resources to support the company and its future,” says Bolt. “We, along with our lenders, are particularly focused on ensuring that this process will have little or no impact on our employees, customers and trade suppliers. A key part of any deal would be that our employee and trade supplier obligations would be satisfied in full, and that we continue to deliver the high quality product and service our customers expect from us,” continues Bolt. The company said that it is and will continue to remain current with its trade suppliers, and has more than adequate cash reserves of over $30 million to fund ongoing operations.
The company said that both its wet shaving and industrial businesses are performing well in 2010 despite challenging economic conditions. “We’re continuing to invest in innovations and new products to grow both our consumer wet shaving and industrial blades businesses,” says Andrew Bolt, chief financial officer and executive vice president. The company is currently making its largest investment ever to develop and launch its next generation shaving technology in early 2011.
The company said that its lenders have extended covenant waiver agreements that would allow the company to pursue the refinancing. The company is also reviewing a backup proposal from its first lien lenders should the second lien proposal not be consummated. Both alternatives would have no operational impact on the company or its stakeholders.
“We are very encouraged by the quality of these proposals and general direction of these discussions. We are fortunate that our lenders have the sophistication and resources to support the company and its future,” says Bolt. “We, along with our lenders, are particularly focused on ensuring that this process will have little or no impact on our employees, customers and trade suppliers. A key part of any deal would be that our employee and trade supplier obligations would be satisfied in full, and that we continue to deliver the high quality product and service our customers expect from us,” continues Bolt. The company said that it is and will continue to remain current with its trade suppliers, and has more than adequate cash reserves of over $30 million to fund ongoing operations.
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