Burlington, MA, Dec. 16, 2003 — Babcock Power Inc. (BPI), a supplier to the power generation industry, announced today that its Revolving Credit and Security Agreement with PNC Business Credit and PNC Bank, N.A., a member of the PNC Financial Services Group, Inc., has been amended to increase the existing revolving credit facility by 60 percent to $40 million and provide additional flexibility to the company’s financial position supporting growth prospects in fiscal year 2004.
As part of this amendment, PNC Business Credit syndicated portions of the facility to Wachovia Bank N.A. and LaSalle Bank, National Association.
BPI’s president and CEO James Wood commented, “This increase in our credit facility along with the commitment of our senior management and employees to execute on our business plan enables BPI to provide important product and aftermarket service options to our customers and partners during a period of continued instability and questionable liquidity in this market.”
Anthony Brandano, BPI’s CFO, commented “The increase in borrowing capacity to $40 Million combined with the company’s strong financial position will provide the company with the necessary financial resources to execute its business plan in future years. We are also pleased to be continuing our relationship with PNC and welcome the opportunity to work with Wachovia and LaSalle in supporting our future growth.”
BPI was formed when senior management joined with HIG, a New York based private investment firm, to purchase most of the North American businesses of Babcock Borsig Power GmbH, completing the transaction on November 29, 2002. BPI completed its most recent fiscal year ended September 28, 2003 ahead of plan.
PNC Business Credit is the business operated by PNC Bank, N.A. as its asset-based lending arm. Headquartered in New York with offices nationwide, PNC Business Credit is an asset-based lending service, with more than $10 billion in commitments. PNC Business Credit specializes in providing secured financing to middle-market companies in the manufacturing, wholesale, distribution, retailing and service industries, many of which have substantial overseas operations.
BPI is a worldwide supplier of technology, equipment, and services to the power generation industry. The company designs, manufactures, and services heat recovery steam generators for gas turbine combined cycle plants, and moisture separator re-heaters, steam surface condensers, and feedwater heaters for fossil-fired and nuclear plants. BPI also offers a complete set of products to enhance the environmental performance of electric utility and industrial facilities. The combined engineering, manufacturing, and nationwide service resources and capabilities of BPI comprise hundreds of years of experience and enable it to be a single-source solutions provider for any power plant operator’s needs. For more information on BPI, go to www.babcockpower.com.