Bank of America delivered a five-year, $25 million revolving credit facility for Orion Energy Systems, a provider of LED lighting systems and turnkey project implementation. The facility replaces Orion’s prior $20 million facility with Western Alliance Bank.
The facility is subject to a borrowing base requirement based on eligible receivables, inventory and cash and is secured by a first lien security interest in substantially all of Orion’s assets. As of the closing date, Orion’s borrowing base supports full availability of the credit facility. However, no amounts are currently borrowed against the facility.
“Orion’s new credit facility, which provides a 25% increase in total financing capacity and a more expansive borrowing base, as well as improved terms and flexibility, is intended to better support the company’s anticipated growth and liquidity needs. We are thankful for the support Bank of America is providing through this facility and expect this relationship to serve us well into the future,” Per Brodin, CFO of Orion, said.