Exhibit 99.1
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Encore Wire Corporation
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PRESS RELEASE
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September 1, 2006 |
1410 Millwood Road |
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McKinney, Texas 75069
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Contact:
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Frank J. Bilban |
972-562-9473
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Vice President & CFO |
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For Immediate Release |
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ENCORE WIRE ANNOUNCES EXPANDED BANK FINANCING
MCKINNEY, TX Encore Wire Corporation (NASDAQ/NMS: WIRE) today announced that the Company has
restructured its existing bank credit facility to accommodate the Companys growth and to meet
increased working capital requirements.
Encore Wire announced that it had expanded its existing revolving line of credit to $200,000,000
from $150,000,000. Under the terms of the amended credit agreement, Encore will have the ability
to borrow up to the new maximum as allowed by financial covenants. The bank group is unchanged,
comprised of Bank of America, as agent, and Wells Fargo Bank. The existing revolving credit
agreement, as previously amended in May 2006, was originally executed on August 27, 2004 and has a
five-year term. Interest on the revolver is calculated at floating rates plus an incremental
adder. The Companys financing structure also includes $45,000,000 of seven-year senior
unsecured notes outstanding to institutional investors issued on August 27, 2004, maturing in
August 2011.
Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, We
expanded our revolving line of credit to keep pace with the growth of Encore Wire and to meet the
increased working capital requirements our industry is experiencing. Encores working capital is
being driven upward by the increased inventory and receivables resulting from our organic growth,
the expansion into the armored cable market and the dramatic increase in copper prices. In the
last year COMEX spot copper prices have gone from $1.50 per pound to as high as $4.00. The
increase in copper prices has resulted in higher dollar balances of inventory and receivables for
wire sold. Encores operating results and financial strength permitted us to expand our credit
facility. We appreciate our banking partners commitment to the continued growth of Encore Wire.
We will continue to manage the Company for the long-term and strive to protect our strong balance
sheet.
Encore Wire Corporation manufactures a broad range of copper electrical wire for interior wiring in
homes, apartments, manufactured housing and commercial and industrial buildings.
The matters discussed in this news release, other than the historical financial information,
including statements about the copper pricing environment, profitability and shareholder value, may
include forward-looking statements that involve risks and uncertainties, including fluctuations in
the price of copper and other raw materials, the impact of competitive pricing and other risks
detailed from time to time in the Companys reports filed with the Securities and Exchange
Commission. Actual results may vary materially from those anticipated.