MEMPHIS, Tenn., Aug 20, 2002 (BUSINESS WIRE) -- Buckeye Technologies Inc.
(NYSE:BKI) today announced that its bank group has waived the requirement that
the Company sell additional equity. The banks also agreed to Buckeye's immediate
prepayment of the $22 million note due on October 1, 2002 to UPM-Kymmene,
thereby reducing the Company's interest expense for the July-September quarter.
There were no other changes to the $215 million credit facility agreement.
Robert E. Cannon, Buckeye Chairman, commented, "We appreciate the bank group's
prompt approval of our request. As we reported in our August 7 conference call,
we have ample liquidity, with cash and credit availability totaling $79 million
at June 30. Our cash and credit availability has modestly improved since that
Mr. Cannon went on to say, "We expect our financial results to progressively
improve as the year unfolds. We are committed to substantially reducing our
leverage during this fiscal year. We have no intention of issuing any new equity
or debt securities in the foreseeable future."
Buckeye, a leading manufacturer and marketer of specialty cellulose and
absorbent products, is headquartered in Memphis, Tennessee, USA. The Company
currently operates facilities in the United States, Germany, Canada, Ireland and
Brazil. Its products are sold worldwide to makers of consumer and industrial
Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws that involve risks
and uncertainties, including but not limited to economic, competitive,
governmental, and technological factors affecting the Company's operations,
financing, markets, products, services and prices, and other factors. For
further information on factors, which could impact the Company and the
statements contained herein, please refer to public filings with the Securities
and Exchange Commission.
CONTACT: Buckeye Technologies Inc., Memphis
Dave Ferraro, 901/320-8115
Gordon Mitchell, 901/320-8256