GREDE HOLDINGS, LLC
27275 Haggerty Road
Suite 420
Novi, MI 48377
(248) 522-4500
February 9, 2010
Grede Holdings LLC Enters into New Credit Agreement
Novi, Mich. – February 9, 2010 - Grede Holdings LLC today announced that the company entered into a new Revolving Credit and Security Agreement, dated as of Fedruary 5, 2010, with Bank of America as a lender and as agent for the lenders. Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE:WFC), is a co-lender on the transaction.
The new Revolving Credit Agreement provides up to $60 million to support the Company’s working capital needs and other general corporate purposes. It is secured by accounts receivables and inventory of the Company and has a term of three years, expiring in February 2013.
“Given the restrictive credit markets of today, the new financing agreement validates Grede’s actions as further evidence of the Company’s future vitality,” said Lou Lavorata, chief financial officer (CFO), Grede. “Through our rigorous turnaround activities, we have brought together two well-positioned companies that have outstanding synergies, a strong balance sheet, low debt, and excellent support from our bank partners,” added Lavorata.
About Grede Holdings LLC
Grede Holdings LLC was formed in 2010 through the combination of the assets of the former Grede Foundries, Inc. with Citation Corporation. The Grede Holdings LLC legacy dates to 1920, when William J. Grede founded Grede Foundries, Inc. with an iron foundry in Wauwatosa, Wis. Privately-held with headquarters in Novi, Mich., the company specializes in high quality ductile, gray and specialty iron castings including lost foam and high silicon moly applications. Grede Holdings LLC operates 14 foundries and two machining operations in the United States serving the Transportation and Industrial markets globally.
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, including Wachovia Capital Finance Corporation (New England).
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For more information, contact: Erin Millerschin, The Millerschin Group at 248-276-1970
emillerschin@millerschingroup.com