BMO Harris Agents New Facility for Sparton Corp
Sparton Corporation announced that the company and its wholly owned subsidiaries, including Sparton Corporation and certain of its subsidiaries entered into a new credit, guaranty agreement and security agreement, dated November 15, 2012, with BMO Harris Bank as a lender and as agent for the lenders.
Sparton said the agreements replace the company’s existing line of credit issued by PNC Bank by providing $65 million in committed credit facilities with an increase option of up to $100 million to support the company’s purchase of Onyx EMS, working capital needs, additional acquisitions and other general corporate purposes. It is secured by substantially all assets of the company and its subsidiaries and has a term of five years, expiring on November 15, 2017.
“We are pleased to have BMO Harris Bank as our new banking partner to support our operating needs and future growth ambitions. The $65 million in credit facilities, coupled with its flexible accordion feature of an additional $35 million, adds to our already strong liquidity position. With access to these funds in place, we plan to continue executing on complementary and compatible acquisitions as a key part of our strategic growth plan,” commented Cary B. Wood, president & CEO of Sparton.
Schaumburg, IL-based Sparton Corporation is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment.