Cone Announces Credit Facilities Extensions

GREENSBORO, N.C., Sept. 28 /PRNewswire/ — Cone Mills Corp.(NYSE: COE) today announced it has amended agreements with its lendersextending the existing credit facility and senior note obligation throughDecember 7, 2001. While the company and its lenders have a term sheet for anextension of the current agreements to December 31, 2002, the events ofSeptember 11 and its aftermath have delayed the process of final documentationnecessitating the current extension. Chief financial officer, Gary L. Smith, commented, “The company expects tomove forward quickly to finalize agreements extending the credit facility andsenior note obligation through year-end 2002.” Founded in 1891, Cone Mills Corporation, headquartered in Greensboro, NC,is the world’s largest producer of denim fabrics and the largest commissionprinter of home furnishings fabrics in North America. Manufacturingfacilities are located in North Carolina and South Carolina, with a jointventure plant in Coahuila Mexico. The matters disclosed in the foregoing release include forward-lookingstatements. These statements represent Cone’s current judgment on the futureand are subject to risks and uncertainties that could cause actual results todiffer materially. Such factors include, without limitation: (i) the demandfor textile products, including Cone’s products, will vary with the U.S. andworld business cycles, imbalances between consumer demand and inventories ofretailers and manufacturers and changes in fashion trends, (ii) the highlycompetitive nature of the textile industry and the possible effects of reducedimport protection and free-trade initiatives, (iii) the unpredictability ofthe cost and availability of cotton, Cone’s principal raw material, and othermanufacturing costs, (iv) Cone’s relationships with Levi Strauss as its majorcustomer, (v) Cone’s ability to attract and maintain adequate capital to fundoperations and strategic initiatives, (vi) increases in prevailing interestrates, and (vii) Cone’s inability to continue the savings and profitimprovement associated with its Reinvention Plan. For a further description ofthese risks, see Cone’s 2000 Form 10-K, “Item 1. Business -Competition, -RawMaterials and -Customers” and Item 7. “Management’s Discussion and Analysisof Results of Operations and Financial Condition.” Other risks anduncertainties may be described from time to time in Cone’s other reports andfilings with the Securities and Exchange Commission.SOURCE Cone Mills Corp.Web Site: Copyright 2001 PR Newswire