Pacific Insight Electronics announced it has obtained credit facilities from two North American banks, for a total of $22.0 million. The proceeds will be used to finance working capital, new equipment purchases, anticipated future growth, and to repay certain existing debt.

The credit facilities encompass a new facility from the Bank of Montreal with an aggregate borrowing base of $14.0 million and a facility from Roynat (the Roynat facility and together with the BMO facility)for the principal amount of $8.0 million.

The BMO Facility, which will replace an existing facility the company has in place with BMO, is comprised of a $12.0 million committed revolving asset-based lending facility and a $2.0 million term loan.

The BMO revolver is available at the company’s option. The availability under the facility is determined based upon eligible accounts receivable and inventory balances. The revolving facility matures three years from the date of closing. The BMO Term Loan is available in a single drawdown at the company’s option, and must be repaid in full by the earlier of 30 months from drawdown and the maturity date of the BMO Revolver. The company drew upon the $2.0 BMO term loan at closing.

The Roynat facility is a revolving term loan and advances thereunder can be made until July 31, 2015 unless otherwise extended by the company and Roynat. Advances on the Roynat facility are based on an eight-year (96 month) amortization schedule. The purpose of the Roynat Facility is to finance equipment. The company drew approximately $5.8 million on the Roynat Facility at closing.

Nelson, BC-based Pacific Insight Electronics designs, manufactures and delivers electronic products and full service solutions to the heavy truck, automotive and specialty markets.