PNC Provides MISCOR With New Financing Arrangement
MISCOR Group reported that it entered into a new credit facility with PNC Bank, replacing its secured credit agreement with Wells Fargo Bank.
The new facility includes a revolving line of credit and term loan that will be used for working capital, capital expenditures, refinancing of existing debt and general corporate purposes.
“We are pleased to begin this relationship with PNC,” stated Michael P. Moore, president and CEO of MISCOR Group. “Their desire and willingness to step forward with a comprehensive package speaks to their confidence in MISCOR’s business strategy and their commitment to partner with MISCOR in expanding our capabilities to better serve our customers.”
The terms of the new credit facility allow for a two-year $6.5 million secured revolving credit line with an initial interest rate of LIBOR plus 2.75%. The terms of the new credit facility also provide a five-year $2.5 million secured term loan with an initial interest rate of LIBOR plus 3.00%. In both instances, based on achieving targeted funded debt to EBITDA, the company can reduce the interest rates to as low as LIBOR plus 1.25% and LIBOR plus 1.50%, respectively.
Massillon, Ohio-based MISCOR Group provides electrical and mechanical solutions to industrial, commercial and institutional customers.