Q.E.P. CO., INC. Amends Loan Agreement
Provides Additional Financial Flexibility to Pursue Strategic Priorities
BOCA RATON, Fla., Dec. 05, 2022 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) announced today that it entered into Amendment No. 3 (the “Amendment”) to the Fifth Amended and Restated Loan and Security Agreement, Waiver, Consent and Release dated February 15, 2021 (as amended, the “Loan Agreement”) with its lending institution, Bank of America, N.A.
The Loan Agreement continues to provide QEP and certain of its subsidiaries with up to $85,000,000 in revolving credit availability for its working capital needs and other general corporate purposes.
The Amendment provides for certain changes to the Loan Agreement, including:
(i) Permitting capital expenditures up to $10,000,000 for upgrades and expansion of certain manufacturing and distribution facilities;
(ii) The disposition of real and personal property in Apple Creek, Ohio for $1,450,000 as part of the dissolution of the Company’s AC Products business; and
(iii) Adjusting the requirements for the Fixed Charge Coverage Ratio financial covenant.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment which is incorporated herein by reference to the Company Quarterly Report to be filed on or about January 15, 2023.
About QEP
Founded in 1979, Q.E.P. Co., Inc. is a leading designer, manufacturer and distributor of a broad range of best-in-class flooring and installation solutions for commercial and home improvement projects worldwide. QEP offers a comprehensive line of specialty installation tools, adhesives, and underlayment as well as a complete line of hardwood, luxury vinyl, and modular carpet tile. QEP sells its products throughout the world to home improvement retailers, professional specialty distribution outlets, and flooring dealers under brand names including QEP®, LASH®, ROBERTS®, Vitrex®, Brutus®, PRCI®, Plasplugs®, Tomecanic®, Premix-Marbletite® (PMM), Homelux®, Capitol® and XPS Foam™. Brand names featured under QEP’s Harris Flooring Group® include Harris®, Kraus® and Naturally Aged Flooring™.
QEP is headquartered in Boca Raton, Florida with offices in Canada, Europe, Asia, Australia and New Zealand. Please visit our website at .
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding access to liquidity and financial flexibility. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties. Forward-looking statements may also be adversely affected by general market factors, federal and state regulations and legislation, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.
CONTACT:
Q.E.P. Co., Inc.
Enos Brown
Executive Vice President and
Chief Financial Officer
561-994-5550
