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L-1 Identity Solutions Amends Credit Agreement

^{Published on 2010-08-31 05:10:46 - Market Wire}
 

STAMFORD, Conn.--([ BUSINESS WIRE ])--L-1 Identity Solutions (NYSE:ID), a leading provider of identity solutions and services, today announced that the Company has amended its credit agreement to extend the time period during which financial covenants modified on March 31, 2010 will apply. If on or prior to September 30, 2010 the Company enters into a definitive agreement to sell all or substantially all of its assets, the amended covenant ratios of a maximum Consolidated Leverage Ratio of 3.85:1.00 and a minimum Consolidated Debt Service Coverage Ratio of 1.65:1.00 will remain in place through March 30, 2011, including the next measurement period ending on September 30, 2010. If a definitive agreement is not executed on or prior to September 30, 2010, the pre-amendment covenant ratios will be in effect for the measurement period ending September 30, 2010 and thereafter.

As previously announced the Company is engaged with interested parties in connection with the strategic alternatives process and expects to execute a definitive agreement prior to September 30, 2010. If the Company does not execute a definitive agreement, it plans to pursue a refinancing or further amendment of its secured credit facility.

About L-1 Identity Solutions

L-1 Identity Solutions, Inc. (NYSE: ID) protects and secures personal identities and assets. Its divisions include Biometrics / Enterprise Access and Secure Credentialing solutions, as well as Enrollment and Government Consulting services. With the trust and confidence in individual identities provided by L-1, international governments, federal and state agencies, law enforcement and commercial businesses can better guard the public against global terrorism, crime and identity theft fostered by fraudulent identity. L-1 Identity Solutions has more than 2,200 employees worldwide and is headquartered in Stamford, CT. For more information, visit [ www.L1ID.com ].

Forward Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect the Company's current views based on management's beliefs and assumptions and information currently available. Forward-looking statements concerning future plans or results are necessarily only estimates, and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include, among other things,the availability of government funding for L-1's products and solutions, the unpredictable nature of working with federal, state and local government customers, general economic and political conditions. the abilityof the Company to successfully execute a definitive agreement for a strategic alternative and conclude the strategic alternative process on a timely basis,the ability of the Company to successfully refinance or amend its credit agreement on a timely basis if required, and additional risks and uncertainties described in the Securities and Exchange Commission filings of L-1 Identity Solutions, including its Form 10-K for the year ended December 31, 2009 and the Company's Form 10-Q for the quarter ended June 30, 2010. L-1 Identity Solutions expressly disclaims any intention or obligation to update any forward-looking statements.

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