L-1 Identity Solutions, Inc. (NYSE: ID), a leading provider of identity
solutions and services, elected to amend its credit agreement to provide
more flexibility for working capital and to enhance compliance with
certain overly restrictive financial covenants. The total available
credit remains unchanged at $423.7 million, comprised of $288.7 million
in term loans and a $135 million revolving credit line, of which, net of
letters of credit, approximately $124 million is available to the
Company.
L-1 had approximately $288.7 million in principal amount of term loans
outstanding under the Credit Agreement as of July 1, 2009. The term
loans under the Credit Agreement have been divided into two tranches
having different principal repayment schedules. The terms of the
revolving line of credit remain unchanged. The first tranche of the term
loans has an aggregate principal amount of approximately $159.1 million
as of July 1, 2009 (the “Tranche B-1 Term Loans”) and the second tranche
has an aggregate principal amount of approximately $129.6 million as of
July 1, 2009 (the “Tranche B-2 Term Loans”). The principal payment terms
of the Tranche B-1 Term Loans remain unchanged, while the Tranche B-2
Term Loans will require principal payments of 1 percent per annum prior
to maturity with the remainder at maturity. The interest rates
applicable to the Tranche B-2 Term Loans will be increased by 0.5
percent per annum.
The lower quarterly principal payments will give the Company more
flexibility in reducing its debt while creating more favorable
conditions for meeting financial covenant tests associated with the
credit agreement.
About L-1 Identity Solutions
L-1 Identity Solutions, Inc. (NYSE: ID) protects and secures personal
identities and assets. Its divisions include Biometrics, Secure
Credentialing and Enterprise Access solutions, as well as Enrollment and
Government Consulting services. With the trust and confidence in
individual identities provided by L-1, international governments,
federal and state agencies, law enforcement and commercial businesses
can better guard the public against global terrorism, crime and identity
theft fostered by fraudulent identity. L-1 Identity Solutions has more
than 2,200 employees worldwide and is headquartered in Stamford, CT. For
more information, visit www.L1ID.com.
Forward Looking Statements
This news release contains forward-looking statements that involve risks
and uncertainties. Forward-looking statements in this press release and
those made from time to time by L-1 Identity Solutions through its
senior management are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements reflect the Company's current views based on management's
beliefs and assumptions and information currently available.
Forward-looking statements concerning future plans or results are
necessarily only estimates, and actual results could differ materially
from expectations. Factors that could cause or contribute to such
differences are fully described in the Securities and Exchange
Commission filings of the Company, including the Company’s Form 10-K for
the year ended December 31, 2008 and the Company’s Form 10-Q for the
quarter ended March 31, 2009. L-1 Identity Solutions expressly disclaims
any intention or obligation to update any forward-looking statements.
ID-F
L-1 Identity Solutions
Doni Fordyce, 203-504-1109
dfordyce@L1ID.com
