Polymer Group, Inc.’s board of directors has authorized the company, through its subsidiaries, to purchase up to $70 million of its outstanding senior secured credit facility as allowed under the provisions of its credit agreement.
PGI's senior secured credit facility consists of a $45 mllion revolving credit facility and a first lien term loan with an outstanding balance of $367.2 million as of September 27, 2008. The company, through its subsidiaries, intends to make market purchases of up to $70 million of its first lien term loan over the next two years. Purchased term loans will be held by one or more of the company's subsidiaries and will not be retired. The successful repurchase of the debt will result in an effective reduction of consolidated indebtedness as measured and defined in the company's credit agreement.