STAMFORD, Conn., June 21, 2002 Xerox Corporation (NYSE: XRX) announced today the renegotiation of its $7 billion revolving line of credit. The company has repaid $2.8 billion of the revolver and extended the maturity date for the remaining $4.2 billion.
"Xerox's strengthened financial position and improved operational performance contributed to our successful renegotiation of the revolver," said Anne M. Mulcahy, Xerox chairman and chief executive officer. "With this new credit facility, we are better positioned to effectively manage our liquidity while focusing intently on building back value in the company."
Effective today, the new credit facility consists of three term loans totaling $2.7 billion and a $1.5 billion revolving line of credit. The first term loan of $700 million must be completely repaid by its final maturity this September. The remaining term loans and the revolving line of credit have a final maturity of April 30, 2005.
"The completion of the revolver renegotiation as well as continued progress in transitioning equipment financing to third parties are evidence of the progress Xerox is making to restructure its balance sheet and restore its financial health," added Lawrence A. Zimmerman, Xerox senior vice president and chief financial officer.
Following the repayment of the $2.8 billion portion of the revolver and $1.3 billion in debt that matured this quarter, Xerox¹s current worldwide cash position is about $1.7 billion.
Xerox is filing today a Form 8-K that includes the terms and conditions of the new revolving line of credit.
Media Contacts:
Kevin Perlmutter, Xerox Europe, Tel: +44 (0) 1895 845219; email: Kevin.Perlmutter@gbr.xerox.com
Eleri Roberts, Xerox Europe, Tel: +44 (0) 1895 845441; eleri.Roberts@gbr.xerox.com
About Xerox Europe
Xerox Europe, the European operations of Xerox Corporation, the world¹s 6th largest information technology company, markets Xerox¹ products, solutions and services throughout Europe. Xerox¹ mission is to be the leader in the global document management market, providing solutions that provide a bridge between the paper and digital worlds and enhance business productivity through the sharing of knowledge.
Xerox Europe has manufacturing operations in Ireland, the UK and Holland and advanced research and development centres in Cambridge (UK), and Grenoble in France. For further information about Xerox Europe, please visit our website at www.xerox.com.
Xerox’, The Document Company and the digital X’ are trademarks of Xerox Corporation. All non-Xerox brands and product names are trademarks or registered trademarks of their respective companies.
This release contains forward-looking statements and information relating to Xerox that are based on our beliefs as well as assumptions made by and information currently available to us. The words "anticipate," "believe," "estimate," "expect," "intend," "will" and similar expressions, as they relate to us, are intended to identify forward-looking statements. Actual results could differ materially from those projected in such forward-looking statements. Information concerning certain factors that could cause actual results to differ materially is included in the company's Form 8-K filed today with the SEC.