UPDATE 1-Manitowoc shares up on strong Q1 results
(Adds details from conference call, background, updates share movement)
BANGALORE May 1 (Reuters) - Shares of Manitowoc Co (MTW.N: Quotazione) rose as much as 25 percent Friday, a day after the diversified manufacturer reported quarterly results above market estimates.
Manitowoc, known for its crawler cranes and boom trucks, also said it would seek an amendment to the financial covenants of its credit facility during the second quarter.
On a conference call with analysts, the company said it has been having informal meetings with multiple members of its bank group, and termed the tone of discussions as "cooperative."
"We are preparing to embark on a formal request in the very near future and we anticipate that a revised and mutually agreeable amendment with the covenant relief would be completed during the second quarter," a company executive said on the call.
In March, Manitowoc withdrew its full-year outlook and said it was heading towards a possible covenant violation this year due to lower-than-expected proceeds from the sale of its Enodis ice business. [ID:nBNG358782]
"We do not envision Manitowoc having difficulty in obtaining the waiver and expect the step up in interest cost will be 150 to 200 basis points," BMO Capital Markets analyst Charles Brady wrote in a note.
The company has about $156 million of cash and investments and nearly $350 million available on bank lines of credit, it said. Its first term loan matures in April 2010.
Manitowoc expects to reduce its debt by at least $450 million this year. Continua...