MOUNT LAUREL, N.J., April 21, 2011 /PRNewswire/ -- Central European
Distribution Corporation (NASDAQ: CEDC) today announced that it signed and
agreed to an amended set of terms for its credit facilities ("the Credit
Facility") with Bank Handlowy w Warszawie S.A. (Citi) and Bank Zachodnia WBK
S.A. As part of the amendment, the Company has agreed to repay the
remaining 122.5 million PLN ($45.20 million) term facility while at the same
time retaining the 120 million PLN ($44.48 million) overdraft facility
which is currently not utilized. The overdraft facility will not contain
either the Consolidated Coverage Ratio or the Net Leverage Ratio previously
required under the Credit Facility. In addition to the elimination of
covenants, the revised terms of the overdraft facility provide for an
initial 100 basis point reduction in the margin charged to the Company, with
further reductions coming over the next nine months, and the maximum amount
available for borrowing under the overdraft facility will be reduced over
the course of the next nine months as well.
Chris Biedermann, CFO, commented, "Following our strong cash flow generation
during the first quarter of 2011, resulting in a cash balance of over $168
million at quarter end, and still having our Polish overdraft facility not
utilized, we felt that the best use of our cash was to simply pay off the
term facility and fully eliminate all financial ratio covenants associated
with the credit facility. With all of our major cash commitments relating
to prior acquisitions behind us now, we feel confident that the remaining
overdraft facility combined with the cash on our balance sheet and projected
cash generation will provide us with adequate liquidity to meet all of our
upcoming obligations."
CEDC is one of the largest producers of vodka in the world and Central and
Eastern Europe's largest integrated spirit beverage business. CEDC produces
the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and
Soplica brands, among others. CEDC currently exports its products to many
markets around the world, including the United States, England, France and
Japan.
CEDC also is a leading importer of alcoholic beverages in Poland, Russia and
Hungary. In Poland, CEDC imports many of the world's leading brands,
including brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa
Liqueur, Remy Martin Cognac, Sutter Home wines, Grant's Whisky, Jagermeister
, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari,
Cinzano and Old Smuggler. CEDC is also a leading importer of premium spirits
and wines in Russia with such brands as Concha y Toro, among others.
This press release contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 including, without
limitation, statements regarding expected cash flow and liquidity. Forward
looking statements are based on our knowledge of facts as of the date hereof
and involve known and unknown risks and uncertainties that may cause the
actual results, performance or achievements of CEDC to be materially
different from any future results, performance or achievements expressed or
implied by our forward looking statements.
Investors are cautioned that forward looking statements are not guarantees
of future performance and that undue reliance should not be placed on such
statements. CEDC undertakes no obligation to publicly update or revise any
forward looking statements or to make any other forward looking statements,
whether as a result of new information, future events or otherwise.
Investors are referred CEDC's Form 10-K for the fiscal year ended December
31, 2010 and to the full discussion therein of risks and uncertainties (
including statements made under the captions "Item 1A. Risks Relating to Our
Business"), forward looking statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations included therein
and similar information in other documents filed by CEDC with the Securities
and Exchange Commission.