Micron Solutions, a contract manufacturing organization, through its wholly-owned subsidiary, Micron Products, which produces components requiring precision machining and injection molding, entered into a three-year, $7 million loan and security agreement with Berkshire Bank, replacing the company’s previous lender.
The agreement includes a revolving line of credit of up to $5 million and a capital expenditures line of credit of $2 million, with the lines secured by the assets of Micron Products and Micron Solutions. The purpose of the financing is to provide additional liquidity to be used for future working capital needs and capital expenditures as well as for general corporate purposes subject to the terms and conditions of the agreement. Under the terms of the agreement, Micron will repay its outstanding subordinated debt in the amount of $500,000.
“We are pleased to announce our agreement with Berkshire Bank. We recently announced that we had completed the sale and leaseback of our main manufacturing facility, which allowed us to clear our balance sheet of bank debt from our previous lender. This new lending agreement provides us with additional capital availability to take advantage of opportunities to expand our business and further improve our operating results. Berkshire Bank’s asset-based lending and treasury teams worked diligently with us to tailor the facility for Micron and we are grateful for the opportunity to partner with them over the coming years,” Bill Laursen, CEO of Micron Products, said.
