Integrated Electrical Services, Inc. (NASDAQ: IESC), a leading national provider of infrastructure services, today announced that it has entered into a new three year Credit and Security Agreement in the amount of up to $30 million with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC). Funds from the credit facility may be used for working capital, issuance of letters of credit, acquisitions, and other general corporate finance purposes.
James Lindstrom, Chairman and Chief Executive Officer, stated, “We appreciate the confidence and increased financial commitment of Wells Fargo, as our new financing provides us the financial flexibility to meet our customers’ needs and to deliver market leading infrastructure services to the industrial, residential and commercial markets as the general economic environment improves. In addition, this financing provides us access to funds to opportunistically invest in additional platforms with similar mindsets, leading market positions and superior returns on capital.”
The new line of credit provides committed revolving funding through August 2015 at more favorable terms than the Company's existing credit facility that was to mature in November 2012 and contains customary affirmative, negative and financial covenants. Prior to the initial extension of credit under the facility, the Company must deliver executed intercreditor agreements with each of the Company’s current sureties on or before August 17, 2012. The Company expects to deliver the intercreditor agreements prior to the August 17 deadline. Periculum Capital Company, LLC acted as financial adviser for the placement of the new credit facility. Additional information regarding the new credit facility will be available in a Quarterly Report on Form 10-Q to be filed by the Company with the Securities and Exchange Commission on or prior to August 14, 2012.
ABOUT INTEGRATED ELECTRICAL SERVICES, INC.
Integrated Electrical Services, Inc. is an infrastructure services company that enjoys leading positions in a broad range of markets for electrical and communications products and services. Our 2,300 employees serve clients throughout the United States. For more information about IES, please visit www.ies-co.com.
ABOUT WELLS FARGO CAPITAL FINANCE
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. For more information, visit http://www.wellsfargocapitalfinance.com.
Certain statements in this release, including statements regarding the restructuring plan and total estimated charges and cost reductions associated with this plan, are "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. 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 inherent uncertainties relating to estimating future operating results and the Company's ability to generate sales and operating income; potential defaults under credit facility and term loan; cross defaults under surety agreements; potential depression of stock price triggered by the potential sale of controlling interest or the entire company as a result of controlling stockholder’s decision to pursue a disposition of its interest in the company; actual costs to wind down facilities exceeding our estimates by a material amount; fluctuations in operating results because of downturns in levels of construction; delayed project start dates and project cancellations resulting from adverse credit and capital market conditions that affect the cost and availability of construction financing; delayed payments resulting from financial and credit difficulties affecting customers and owners; inability to collect moneys owed because of the depressed value of projects and the ineffectiveness of liens; inaccurate estimates used in entering into contracts; inaccuracies in estimating revenue and percentage of completion on projects; the high level of competition in the construction industry, both from third parties and former employees; weather related delays; accidents resulting from the physical hazards associated with the Company's work; difficulty in reducing SG&A to match lowered revenues; loss of key personnel; litigation risks and uncertainties; difficulties incorporating new accounting, control and operating procedures; and failure to recognize revenue from work that is yet to be performed on uncompleted contracts and/or from work that has been contracted but not started due to changes in contractual commitments.
You should understand that the foregoing, 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, 2011, could cause future outcomes to differ materially from those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise information concerning its restructuring efforts, 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 "Investor Relations." 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.
Robert Lewey, CFO, 713-860-1500
Phil Denning, 203-682-8246
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