HOUSTON--(BUSINESS WIRE)--ENGlobal (NASDAQ: ENG), a leading provider of engineering and related project services, announced today that it has entered into a new $25 million revolving credit facility with Wells Fargo Bank, N.A. (“Wells Fargo Credit Facility”). The new credit facility matures in April 2012 and replaces its existing $50 million credit facility with a different lender that was scheduled to mature in August 2010.
William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal Corporation, stated, “We are pleased to announce this new $25 million revolving credit facility. We believe the new line of credit and our new relationship with Wells Fargo offers greater long-term flexibility for acquisitions and other business initiatives.”
Availability under the Wells Fargo Credit Facility at December 31, 2009, totaled approximately $18.4 million, which is $25.0 million less $6.0 million drawn down and $600,000 in letters of credit.
The Company’s Current Report on Form 8-K, including exhibits, will be filed with the Securities and Exchange Commission on or before Monday, January 11, 2010 with more information.
ENGlobal provides engineering, construction, automation, land and regulatory services principally to the energy sector throughout the United States and internationally. The Company has over 2,300 employees in 19 offices and occupies about 500,000 square feet of office and fabrication space. ENGlobal has been named one of the fastest growing engineering firms in the United States and Canada by ZweigWhite in each of the last six years. Further information about the Company and its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) our ability to respond appropriately to the current worldwide economic situation and the resulting decrease in demand for our services and competitive pricing pressure; (2) our ability to achieve our business strategy while effectively managing costs and expenses; (3) our ability to collect accounts receivable in a timely manner; (4) our ability to accurately estimate costs and fees on fixed-price contracts; (5) the effect of changes in laws and regulations with which the Company must comply and the associated costs of compliance with such laws and regulations, either currently or in the future, as applicable; (6) the effect of changes in the price of oil; (7) delays related to the award of domestic and international contracts; (8) the effect of changes in accounting policies and practices as may be adopted by regulatory agencies, as well as by the FASB; (9) the effect on our competitive position within our market area in view of, among other things, increasing consolidation currently taking place among our competitors; (10) our ability to comply with the terms under our line of credit; (11) our ability to execute to our internal performance plans such as our productivity improvement and cost reduction initiatives; (12) achievement of our acquisition and related integration plans; (13) our ability to win new business and convert those orders to sales within the fiscal year in accordance with our annual operating plan; and (14) the uncertainties of the outcome of litigation, as well as other risks and uncertainties, including but not limited to those detailed herein and from time to time in our Securities and Exchange Commission filings. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings. Also, the information contained in this press release is subject to the risk factors identified in the Company’s most recent Form 10-K.
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