Consolidated Graphics amends loan, obtaining new revolver and revising leverage covenants

By Sara Rosenberg

New York, Nov. 14 - Consolidated Graphics Inc. said it amended its credit facility, providing for a $150 million revolver due July 2007 and revising some leverage covenants.

The changes provide for improved pricing and greater flexibility for future acquisitions and stock repurchases.

The company used proceeds from the revolver to retire $20 million of previously outstanding bank term debt. After rolling over other outstanding borrowings, the company had future availability of about $100 million.

"Despite a sustained period of challenging economic and industry conditions, Consolidated Graphics has successfully maintained one of the strongest balance sheets in the commercial printing industry," said Joe R. Davis, chairman and chief executive officer, in a company news release. "Our strong operating cash flow has enabled us to reduce our total debt outstanding by $126 million, or 48%, since our 2001 fiscal year-end. This amendment to our credit facility is a positive reflection of these accomplishments."

Consolidated Graphics is a Houston-based sheet-fed and half-web commercial printing company.

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