Polymer Group Inc. Announces New $455 Million Senior Secured Bank Facility

Polymer Group, Inc. announced it has
successfully closed and received proceeds from its new $455 million syndicated credit facility
arranged by Citigroup Global Markets, Inc.

“This refinancing is expected to have a positive impact on our cash flow due to the
significantly lower interest rate. Additionally, we view this as an affirmation from the financial
markets of the improvements we have made in our business and confirmation of our sound strategies
for future growth,” said Polymer Group’s chief executive officer, James L. Schaeffer.

The new senior bank facility consists of a $45 million revolving credit facility maturing in
2010 and a $410 million senior secured term loan that matures in 2012. The proceeds were used to
fully repay indebtedness outstanding under the company’s previous senior credit facility. The
interest rate on the new facility is based on a spread over the London Interbank Offered Rate
(LIBOR) of 2.25% – or 1.25% over a defined Alternate Base Rate (ABR) – for both the revolving
credit facility and the term loan. The company’s previous senior facility included a $280 million
Term Loan B with an interest rate of LIBOR plus 3.25% (or ABR plus 2.25%), a $125 million Term Loan
C with an interest rate of LIBOR plus 6.25% (or ABR plus 5.25%) and a $50 million revolving credit
facility with an interest rate of LIBOR plus 2.50% (or ABR plus 1.50%). The credit facility is
secured by certain assets of the company.

Press Release Courtesy of PR Newswire

November 2005