Comerica Bank, Export Development Amend DragonWave Facilities
DragonWave announced that it amended its existing revolving credit facilities with Comerica Bank and Export Development Canada. The maximum amount of credit availability under the amended asset-based credit facility has been increased from $20 million to $40 million.
Credit availability is subject to ongoing compliance with borrowing covenants and short-term assets on hand. DragonWave currently has $15 million drawn on this facility, and access to additional available funds is geared to future growth in accounts receivable. The revolving credit maturity date was also extended from May 31, 2014 to June 1, 2016.
“We are pleased that Comerica Bank and Export Development Canada have provided us with additional flexibility to respond to potential working capital needs driven by opportunities in our pipeline,” said Peter Allen, DragonWave president and CEO.
The arrangements include other terms, conditions and covenants customary for asset-based revolving credit facilities.
DragonWave® is a provider of high-capacity packet microwave solutions that drive next-generation IP networks.