Centerplate Obtains Amendment to Senior Credit Facility and Changes Monthly Distributions
STAMFORD, Conn., May 19 /PRNewswire-FirstCall/ -- Centerplate, Inc. (Amex: CVP; TSX: CVP.un), today announced that it has obtained an amendment to its senior credit facility. This amendment -- which among other things adjusts several ratio requirements -- increases the company's financial flexibility and enhances its ability to pursue attractive growth opportunities and related capital investments in 2008.
The company also announced that in connection with this amendment, its Board of Directors has determined that it is prudent to eliminate the monthly dividend payments. Accordingly, monthly payments to IDS unit holders will consist solely of interest in the amount of $0.064 per IDS beginning in June 2008. The company expects to continue to pay the monthly interest on its subordinated notes, although this payment could be deferred at any time should the company not meet the ratios specified in the credit agreement.
As previously announced, Centerplate has initiated a process to evaluate a range of capital structure and other alternatives and has engaged UBS Securities as the company's financial advisor to assist in this process. Centerplate expects to complete the evaluation process within the five-month timeframe provided by the amendment. Centerplate today filed its Form 10-Q for the quarter ended April 1, 2008, and IDS unit holders are urged to review the Form 10-Q for additional information on the company's credit agreement and the terms of the amendment.
About Centerplate Centerplate, Inc., with its principal executive office in Stamford, CT, crafts and delivers extraordinary entertainment experiences in more than 130 prominent sports, entertainment and convention center venues across North America. Visit the company online at www.centerplate.com . Forward-Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although Centerplate believes that the expectations reflected in these forward-looking statements are reasonable, the company can give no assurance that these expectations will prove to have been correct or that they will occur. Important factors beyond Centerplate's control, including general economic conditions, the outcome of the company's exploration of alternatives, consumer spending levels, changing trends in our business and competitive environment, the company's borrowing capacity and the provisions of the credit agreement and the indenture, adverse weather conditions and other factors, as well as the risks identified in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission could cause actual results to differ materially from Centerplate's expectations. Centerplate undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Contact Information First Call Analyst:
CONTACT: Gael Doar, Director of Communications of Centerplate, Inc., Web site: http://www.centerplate.com/
2008-05-19 18:39:03 0365753 PRNEWSWIRE
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