Kadant Extends $100M Uncommitted Private Shelf Agreement with Prudential Capital Group

Kadant Inc. KAI today announced it has extended an uncommitted $100 million Multi-currency Note Purchase and Private Shelf Agreement with Prudential Capital Group, an institutional investment business of Prudential Financial Inc. PRU for an additional three-year term. Under the terms of the Agreement, Kadant can authorize, subject to acceptance by Prudential Capital Group, the issuance of senior unsecured promissory notes in the aggregate principal amount of up to $100 million (including up to the equivalent of $75 million in other currencies) for terms not to exceed twelve years. Covenants and certain restrictions of the Agreement are substantively equivalent to those contained in the Company's credit agreement dated February 13, 2008, including financial covenants which limit consolidated leverage to 3.5 times earnings before interest, taxes, depreciation and amortization. The Company intends to use the proceeds from any borrowings made under the Agreement for acquisitions, stock buybacks, refinancing of existing debt, or for other corporate purposes.