Universal Power Group Secures $30 Million Revolving Credit Agreement and $4 Million Term Loan with C


Universal Power Group Secures $30 Million Revolving Credit Agreement and $4 Million Term Loan with Comerica Bank

CARROLLTON, Texas--(BUSINESS WIRE)-- Universal Power Group, Inc. (NYSE MKT: UPG), a Texas-based distributor and supplier of batteries and related power accessories, and a third-party logistics provider, today announced the signing of a four-year credit agreement and term loan with Comerica Bank.

The $30 million credit facility includes an accordion feature that will allow for a $10 million increase to the credit line if needed. The new credit agreement expires on Dec. 31, 2016, and replaces UPG's current credit agreement which expires on June 30, 2013. The interest rate associated with the new credit agreement is based on the London Interbank Offered Rate (LIBOR), plus 1.875% for the first year of the agreement. During years two through four of the agreement, the rate will vary based on the ratio of UPG's total debt to total tangible net worth, and will be set at LIBOR plus a spread of between 1.875% and 2.125%.

"We are pleased to begin this new relationship with Comerica Bank and are proud to be recognized by such a reputable financial institution for our solid financial performance," stated Ian Edmonds, UPG's President and Chief Executive Officer. "This new credit facility will allow us to continue to control our borrowing costs, while providing a readily available source of capital to fund our short- and long-term initiatives for future growth."

The Company maintains a credit facility to finance short-term demands for working capital and other needs associated with its long-term growth initiatives. In conjunction with the new credit agreement, UPG has implemented a $4 million, four-year term loan which will be used to refinance existing debt under the Company's previous credit facility. The term loan is payable in equal quarterly installments of principal plus accrued interest and a balloon payment at the end of year four.

About Universal Power Group, Inc.

Universal Power Group, Inc. (NYSE MKT: UPG) is a leading supplier and distributor of batteries, power accessories, security and cable products, and a provider of supply chain and other value-added services. UPG's product offerings include proprietary brands of industrial and consumer batteries of all chemistries, chargers, power accessories, solar products, wire and cable and security products. UPG's supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly and coordinating battery recycling efforts. For more information, please visit the UPG website at www.upgi.com.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," and "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties described from time to time in the Company's filings with the Securities and Exchange Commission. Historical financial results are not necessarily indicative of future performance.


Universal Power Group, Inc.
Mimi Tan, SVP, 469-892-1122
Investor Relations:
Lambert, Edwards & Associates
Jeff Tryka, CFA, 616-233-0500
Karen Keller, 616-233-0500

KEYWORDS: United States North America Texas


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