Broadwind Energy increased its credit line with CIBC, USA to $35 million, and extended the term of the facility for 3 years.
Under the terms of the new credit agreement, Broadwind will have the ability to borrow up to $35 million against a borrowing base consisting of 85% of the face value of eligible receivables of the company, plus 50% of the lower of cost or market value of eligible inventory of the company, not to exceed $12.5 million, plus the sum of 75% of the appraised net orderly liquidation value of the company’s eligible machinery and equipment and 50% of the fair market value of the company’s mortgaged property, not to exceed $12 million.
The company separately announced it has received $8 million of new wind tower orders, which will be produced in Manitowoc, WI in 2019.
Broadwind CEO Stephanie Kushner stated, “We are pleased to expand our relationship with CIBC. The increase in our credit line will provide additional flexibility to support near term strength in the U.S. wind market, and continued expansion of the products we produce in each business. Recent wind tower orders include an initial qualification order from a new entrant in the U.S. Wind market. Our focus continues to be on diversification and this order represents a key milestone for us.”
