Allied Motion has obtained a new senior secured revolving credit facility of $225 million with an accordion feature allowing expansion up to $300 million.
Borrowings will bear interest on a sliding-scale rate based on leverage of 1.00% to 1.75% over LIBOR.
“This new facility reduces our cost of debt, provides greater flexibility and enhances our ability to continue executing our growth strategy, both organic and acquisitive,” said Michael R. Leach, CFO. “We will continue to prudently manage our balance sheet through our disciplined capital allocation strategy.”
The new $225 million, five-year revolving credit facility is secured by substantially all of the Company’s non-realty assets and is fully and unconditionally guaranteed by certain of the company’s subsidiaries. HSBC Bank USA will serve as the lead bank and administrative and collateral agent for the new senior secured credit facility.
At current debt and leverage levels, annual net interest expense is reduced approximately $0.25 million on a pre-tax basis.
Amherst, NY-based Allied Motion designs, manufactures and sells precision and specialty controlled motion products and solutions used in a broad range of industries within vehicle, medical, aerospace & defense, and industrial industries.