PNC Provides Park Electrochemical $104MM Revolver
Park Electrochemical announced that it entered into a four-year revolving credit facility agreement with PNC Bank. The agreement provides for loans of up to $104 million, and, subject to the terms and conditions of the agreement, an interest rate on the outstanding loan balance of LIBOR plus 1.10%.
The agreement replaces one the company entered into with PNC Bank in January 2013 to finance the payment of a special cash dividend in February 2013.
The company intends to use substantially all of the funds borrowed under this new credit facility to finance the payment of the previously announced special dividend of $2.50 per share payable February 25, 2014 to shareholders of record at the close of business on February 11, 2014 and to continue the loan that was provided under the prior credit facility agreement with PNC Bank. The company expects that this dividend will not be treated as a taxable dividend for Federal income tax purposes.
Park Electrochemical Corp. is a global advanced materials company that develops and manufactures high-technology digital and RF/microwave printed circuit materials.