Integrated Electrical Services Announces Amendment to the Credit Facility and Appointment of Robert Lewey to the Board of Dir...
May 03 2016 - 8:30AM
Integrated Electrical Services, Inc. (or “IES”) (NASDAQ:IESC) today
announced that the Company has entered into a Second Amendment (the
“Amendment”) to the Amended and Restated Credit and Security
Agreement with Wells Fargo Capital Finance, part of Wells Fargo
& Company (NYSE:WFC), with improved terms. Additionally, IES
today announced that it has expanded its Board of Directors with
the appointment of Robert Lewey, who has served as President of the
Company since May 12, 2015.
SECOND AMENDMENT TO THE CREDIT
FACILITYPursuant to the Amendment, the Company’s maximum
revolver amount increased from $60 million to $70 million.
Additionally, the Amendment modified the calculation of amounts
available under the facility by expanding the definition of the
assets we can include in our borrowing base and increasing our
advance rates. The interest rate on our current balance was
decreased and the maturity date of the revolving credit facility
was extended from August 9, 2018 to August 9, 2019.
Tracy McLauchlin, IES's Chief Financial Officer,
stated, "Our amended credit facility reflects IES’s continued
progress. We expect these amended terms to significantly
increase the amounts available to us to borrow under the credit
facility, with the opportunity to further increase our availability
under the facility as our business and asset base grows. I also
want to thank Wells Fargo for their continued support of IES."
APPOINTMENT OF ROBERT LEWEY TO THE BOARD
OF DIRECTORSEffective May 3, 2016, the Company’s Board of
Directors expanded the number of directors from four to five, and
appointed Robert Lewey, who will continue to serve as President of
the Company, as a member of the Board.
David Gendell, non-executive Chairman of the
Board of Directors, stated, "Since Bobby’s promotion to President
of IES one year ago, he has done a terrific job leading our
organization forward. Not only is IES more profitable, but we have
also acquired four companies, disposed of a non-core asset, and
significantly improved our surety arrangements and credit facility
under his leadership. Bobby’s business and operating insight,
historical knowledge of IES, and his financial acumen make him an
ideal candidate to join our Board of Directors.”
ABOUT INTEGRATED ELECTRICAL
SERVICES, INC.IES is a holding company that owns and
manages diverse operating subsidiaries, comprised of providers of
industrial infrastructure services to a variety of end markets. Our
over 3,100 employees serve clients in the United States. For more
information about IES, please visit www.ies-co.com.
Certain statements in this release may be deemed
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, all of which are based upon various estimates
and assumptions that the Company believes to be reasonable as of
the date hereof. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "could," "should,"
"expect," "plan," "project," "intend," "anticipate," "believe,"
"seek," "estimate," "predict," "potential," "pursue," "target,"
"continue," the negative of such terms or other comparable
terminology. These statements involve risks and uncertainties that
could cause the Company's actual future outcomes to differ
materially from those set forth in such statements. Such risks and
uncertainties include, but are not limited to, the ability of our
controlling shareholder to take action not aligned with other
shareholders; the possibility that certain tax benefits of our net
operating losses may be restricted or reduced in a change in
ownership; the inability to carry out plans and strategies as
expected, including our inability to identify and complete
acquisitions that meet our investment criteria in furtherance of
our corporate strategy; competition in the industries in which we
operate, both from third parties and former employees, which could
result in the loss of one or more customers or lead to lower
margins on new projects; fluctuations in operating activity due to
downturns in levels of construction, seasonality and differing
regional economic conditions; and our ability to successfully
manage projects as well as other risk factors discussed in this
document and in the Company's annual report on Form 10-K for the
year ended September 30, 2015. You should understand that
such risk factors could cause future outcomes to differ materially
from those experienced previously or those expressed in such
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any information, including information
concerning its controlling shareholder, net operating losses,
borrowing availability, or cash position, or any forward-looking
statements to reflect events or circumstances that may arise after
the date of this release.
Forward-looking statements are provided in this press release
pursuant to the safe harbor established under the Private
Securities Litigation Reform Act of 1995 and should be evaluated in
the context of the estimates, assumptions, uncertainties, and risks
described herein.
General information about Integrated Electrical Services, Inc.
can be found at http://www.ies-co.com under "Investors." The
Company's annual report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K, as well as any amendments to
those reports, are available free of charge through the Company's
website as soon as reasonably practicable after they are filed
with, or furnished to, the SEC.
Contact: Tracy McLauchlin, CFO
Integrated Electrical Services, Inc.
713-860-1500
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