Westford, Massachusetts, USA, 08 August 2011 -- (BUSINESS WIRE) -- Kadant Inc. (NYSE:KAI) today announced it has extended an uncommitted USD 100 million multicurrency note purchase and private shelf agreement with Prudential Capital Group, an institutional investment business of Prudential Financial Inc. (NYSE:PRU) for an additional three-year term.
Under the terms of the agreement, Kadant can authorize, subject to acceptance by Prudential Capital Group, the issuance of senior unsecured promissory notes in the aggregate principal amount of up to USD 100 million (including up to the equivalent of USD 75 million in other currencies) for terms not to exceed 12 years.
Covenants and certain restrictions of the agreement are substantively equivalent to those contained in the company's credit agreement dated 13 February 2008, including financial covenants that limit consolidated leverage to 3.5 times earnings before interest, taxes, depreciation, and amortization (EBITDA). The company intends to use the proceeds from any borrowings made under the agreement for acquisitions, stock buybacks, refinancing of existing debt, or for other corporate purposes.
Kadant is a leading supplier to the global pulp and paper industry. Its stock preparation, fluid-handling, doctoring, and water management equipment and systems are designed to increase efficiency and improve quality in pulp and paper production. Many of Kadant's products, particularly in its fluid-handling product line, also are used to optimize production in other process industries. In addition, the company produces granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Westford, Massachusetts, had revenues of USD 270 million in 2010, and has 1600 employees in 16 countries worldwide. For more information, visit www.kadant.com.