Riviera Tool Secures $13.2 Million Financing With Laurus Funds
GRAND RAPIDS, Mich., May 18 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) announced today that is has secured a $13.2 million financing
facility with Laurus Master Fund, Ltd. ("Laurus Funds"), a New York based
Institutional equity fund that specializes in making direct investments in
small to mid cap public companies.
The secured financing consists of a $10.0 million revolving line of credit and
a $3.2 million term note. Both components of this financing facility have
fixed price conversion provisions at a premium to the current market price and
provides the Company a reduction in the interest rate it pays for borrowed
funds. Use of proceeds from this financing will primarily be used for working
capital purposes and to finance current and future growth of the Company's
long-term contracts in addition to repaying in full its senior lender and $3
million of subordinated debt. Specific details of this transaction may be
found in the Company's Form 8-K filed with the Securities and Exchange
Commission.
"We are very pleased to have secured this financing facility which will support
the Company's current and future growth," said Kenneth K. Rieth, president and
chief executive officer of Riviera Tool. "This financing together with the
recently announced financing arrangement with a large Asian automaker to
support subcontracting work to low-cost Asian die manufactures will assist the
Company in being globally competitive for both domestic and international
tooling contracts." Rieth said that the level of quoting activity remains strong and contract
retention has increased significantly over the past several months. He
further noted that the Company's investments and ongoing commitment in leading
design and manufacturing technologies continue to be a contributing factor in
the Company's improving gross margin. "The Company is uniquely positioned from
both a financial and technological perspective to successfully leverage the
numerous global opportunities available in the Company's rapidly changing
markets." About Riviera Tool: Riviera Tool Co. (http://www.rivieratool.com/ ) designs, develops and
manufactures large-scale, custom metal stamping die systems used in the high-
speed production of sheet metal parts and assemblies for the global automotive
industry. A majority of Riviera's sales are to DaimlerChrysler, General Motors
Corp., Ford Motor Co., foreign-domestic automobile OEMs and their Tier One
Suppliers.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this news release include certain predictions
and projections that may be considered forward-looking statements under
securities laws. These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors. DATASOURCE: Riviera Tool Company CONTACT: Kenneth K. Rieth, CEO, Peter Canepa, CFO, both of Riviera Tool Company, +1-616-698-2100; or Investor Inquires: Jeff Lambert, +1-616-233-0500, for Riviera Tool Company Web site: http://www.rivieratool.com/
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