HOUSTON, Nov. 14 -- Consolidated Graphics, Inc. today announced the completion of an amendment to its existing bank credit facility. The amendment significantly enhances the Company's flexibility to execute its future growth strategies and enhance shareholder value. The amended agreement provides for a $150 million revolving credit facility that will mature in July 2007. The amendment also includes revisions to certain leverage covenants resulting in improved pricing and greater flexibility for future acquisitions and stock repurchases. Upon completing the amendment, the Company utilized proceeds from the revolving credit facility to retire $20 million of previously outstanding bank term debt and, after rolling over other outstanding borrowings, had future availability of approximately $100 million.
"Despite a sustained period of challenging economic and industry conditions, Consolidated Graphics has successfully maintained one of the strongest balance sheets in the commercial printing industry," commented Joe R. Davis, Chairman and Chief Executive Officer. "Our strong operating cash flow has enabled us to reduce our total debt outstanding by $126 million, or 48%, since our 2001 fiscal year-end. This amendment to our credit facility is a positive reflection of these accomplishments."
Chris Colville, Executive Vice President and Chief Financial Officer added, "The confidence our banks have in our business model and future growth opportunities is demonstrated in this amendment. We appreciate their support and look forward to continuing our track record of strong financial and operational performance."
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