Anchor Glass Container Corporation, the third largest container manufacturer in the USA, announced 15 February 2005 that it has entered into a USD 20M revolving credit facility with Madeleine L.L.C., an affiliate of its largest stockholders, funds and accounts managed by Cerberus Capital Management L.P and its affiliates. As availability under the new facility is not subject to a borrowing base, the new facility will provide the company with liquidity in excess of that provided by the borrowing base under its USD 115M primary lending facility. The company anticipates that it will have approximately USD 22M of availability under its two revolving credit facilities, following the interest payment on its USD 350M senior secured notes due 2013, which was due to be paid on 15 February 2005. The new revolving credit facility will mature on 30 August 2007, contemporaneously with the maturity of the company's existing revolving credit facility, and will bear interest on drawn portions thereof at LIBOR plus 8%. Interest on the new facility will be payable in kind if availability under the company's existing revolving credit facility is less than an agreed upon threshold. The new revolving credit facility will be secured by a second lien on the company's inventory, receivables and general intangibles.
