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Kadant Inc.
Westford, Massachusetts, USA, 21 May 2008 --(BUSINESS WIRE)-- Kadant Inc. (NYSE:KAI) today announced it has entered into an uncommitted USD 100 million three-year Multi-currency Note Purchase and Private Shelf Agreement with an affiliate of Prudential Capital Group, an institutional investment business of Prudential Financial Inc. (NYSE: PRU).

Under the terms of the agreement, Kadant can authorize, subject to acceptance by Prudential, 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 which 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 buy-backs, refinancing of existing debt, or for other corporate purposes.

Kadant Inc. is a leading supplier to the global pulp and paper industry, with a range of products and services for improving efficiency and quality in pulp and paper production, including paper machine accessories and systems for stock preparation, fluid handling, and water management. Kadant's fluid-handling products are also used to optimize production in the steel, rubber, plastics, food, and textile 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 366 million in 2007, and employs 2000 people in 16 countries worldwide. For more information, visit www.kadant.com.

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