MINNEAPOLIS, April 1, 2013 /PRNewswire/ -- Appliance Recycling
Centers of America, Inc. (NASDAQ: ARCI), a leading provider of
appliance retailing and recycling services, today announced that
the Company has entered into a two-year extension of its credit
agreement with PNC Bank, National Association (PNC), which includes
a senior secured revolving line of credit and term loan. The
extension of the credit agreement, which was signed on March 14, 2013, extends the agreement to
January 24, 2016.
Under terms of the extension, ARCA may borrow an aggregate
principal amount of up to $15 million
under the revolving line of credit, the same amount allowed under
the original three-year credit agreement signed on January 24, 2011. The Company intends to use the
revolving line of credit for ongoing working capital needs and
general corporate purposes.
The extension of the credit agreement waived the Company's prior
events of default related to the minimum fixed charge coverage
ratio and the limitation on loans to affiliates and also reset the
financial covenants.
Edward R. (Jack) Cameron,
president and chief executive officer, commented, "We appreciate
the confidence that PNC Bank has shown in ARCA by extending its
credit agreement for an additional two years. The $15 million revolving line of credit, combined
with the decisive steps we are taking in 2013 to improve our
operational execution and profitability, better positions us to
capitalize on future growth opportunities."
About ARCA
ARCA's three business components are uniquely positioned in the
industry to work together to provide a full array of
appliance-related services. ARCA Advanced Processing, LLC employs
advanced technology to refine traditional appliance recycling
techniques to achieve optimal revenue-generating and environmental
benefits. ARCA is also the exclusive North American distributor for
UNTHA Recycling Technology (URT), one of the world's leading
manufacturers of technologically advanced refrigerator recycling
systems and recycling facilities for electrical household
appliances and electronic scrap. ARCA's regional centers process
appliances at end of life to remove environmentally damaging
substances and produce material byproducts for recycling for
approximately 150 utilities in the U.S. and Canada. Nineteen company-owned stores under
the name ApplianceSmart, Inc.® sell new appliances
directly to consumers and provide affordable ENERGY
STAR® options for energy efficiency appliance
replacement programs.
This press release contains statements that are
forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995, including statements regarding
ARCA's future success. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from the statements made, including the risks
associated with general economic conditions, competition in the
retail and recycling industries and regulatory risks. Other factors
that could cause operating and financial results to differ are
described in ARCA's periodic reports filed with the Securities and
Exchange Commission. Other risks may be detailed from time to time
in reports to be filed with the SEC.
SOURCE Appliance Recycling Centers of America, Inc.