Daily News: July 19, 2013

JPMorgan-Led Group Provides Revolver to Newport Corporation

Newport Corporation announced that it entered into a new $275 million senior secured revolving credit facility, with a $50 million expansion option, through a syndicate of global financial institutions led by JPMorgan Chase Bank.

The new credit facility replaces the company’s existing $250 million senior secured credit facility, has a term of five years and initially bears an interest rate of 2.0% over LIBOR, or 1.0% over a base rate, at the company’s option, with a commitment fee of 0.35% on the undrawn amount of the facility.

Upon the closing of this new credit facility, Newport repaid its existing facility in full by borrowing $120 million under the new facility, and repaying the remainder from the company’s cash balances, which reduced its outstanding senior secured debt by approximately $32.6 million.

The company is permitted to use the new facility for working capital, acquisitions, stock repurchases and other general corporate purposes.

Charles F. Cargile, Newport’s senior vice president, chief financial officer and treasurer, stated, “We are very pleased to have completed this refinancing, which gives us significantly greater flexibility from a borrowing capacity, cash flow and covenant perspective, with lower on-going financing costs. We are confident that it will provide us with the liquidity we need to execute our strategic plan and fuel our future growth.”

Newport Corporation is a global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, defense and security, and industrial manufacturing markets.