KEMET Announces Closing of New Medium-Term Credit Facility
Greenville, South Carolina (October 22, 2008) - KEMET Corporation
(NYSE:KEM) today announced that it has completed the closing and funding of a new medium-term credit facility (the "Credit Facility") in the principal amount of EUR 60.0 million with UniCredit Corporate Banking S.p.A., formerly UniCredit Banca d'Impresa S.p.A. ("UniCredit"), a financial institution headquartered in Italy and part of the Milan-based UniCredit Group. Proceeds of the Credit Facility in the amount of EUR 50.0 million
were used to pay off an existing short-term credit facility with UniCredit with a scheduled maturity date of December 2008. Additional proceeds from the Credit Facility in the amount of EUR 10.0 million were applied to reduce the outstanding principal of the EUR 46.8 million short-term credit facility with UniCredit with a scheduled maturity date of April 2009 (the "April 2009 Facility"). In addition, the Company made a cash payment out of the Company's existing cash balance to UniCredit of EUR 1.8 million which was applied to further reduce the outstanding principal of the April
2009 Facility.
The Credit Facility is effective for a four and one-half year term, terminating on April 1, 2013. Under the terms of the Credit Facility, the Company will repay the principal amount in nine equal, semi-annual installments with the first payment due in April 2009. The Credit Facility will be priced at EURIBOR plus 1.7 percent, and will be secured with land and real estate in Italy, certain accounts receivable in Europe, and a
pledge of the shares of Arcotronics Italia S.p.A. and Arcotronics
Industries S.r.l., two of the Company's subsidiaries in Italy.
The Company had previously announced the execution of the Credit Facility agreement in a September 29, 2008 press release. In the same release, the Company announced receiving a commitment from UniCredit for a separate EUR 35.0 million credit facility ("Facility B") structured as a factoring arrangement priced at EURIBOR plus 1.7 percent with repayment at
maturity in December 2013. The use of proceeds from Facility B will be
used to pay off the remaining balance of the April 2009 Facility. Closing on Facility B is expected to occur as soon as factoring mechanisms are put in place, but in any event no later than April 2009.
KEMET Corporation (KEM) applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers
around the world. KEMET offers the world's most complete line of
surface-mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. KEMET's common stock is listed on The New York Stock Exchange under the symbol KEM.
Additional information about KEMET can be found at www.kemet.com .
Contact:
William M. Lowe, Jr.
Executive Vice President and
Chief Financial Officer
864-963-6484
billlowe@kemet.com
Dean W. Dimke
Director of Corporate and
Investor Communications
954-766-2806
deandimke@kemet.com
