Telit Communications entered into committed credit facilities with HSBC Bank and certain of its affiliates and Bank Hapoalim (BHI USA) for an aggregate amount of $110 million. The new facilities replace the group’s existing non-committed credit lines, which amounted to about $70 million.

The new facilities consist of a committed five-year term credit facility for $40 million and a committed three-year term revolving credit facility for $35 million, in total $75 million with HSBC and a committed three-year term revolving credit facility with BHI USA for $35 million.

The group already benefits from preferred Italian government guaranteed loans of up to approximately $55 million, of which approximately $30 million has already been drawn down.

With the new facilities, the group’s total debt facilities amount to approximately $165 million. The average annual interest rate of the facilities, some $165 million, if and when fully drawn down, will be about 2.2%.

The new facilities will provide the group with additional financial resources as it continues to strengthen its position in the rapidly developing and growing IoT market.

“The strength of our business, based on a long track record of growth and profitability and our position in the fast growing IoT markets, have enabled us to convert and increase significantly our non-committed credit lines into committed credit lines with these two leading international banks,” Yosi Fait, president and finance director of Telit, said. “The new facilities substantially strengthen our financial position and provide us with the flexibility to support both our acquisition strategy and the organic growth of the business as we increase our momentum, particularly in our end to end IoT solutions.”

Headquartered in Rome, Telit offers the a portfolio of integrated products and services for end-to-end IoT deployments – including cellular communication modules in all technologies, GNSS, short-to-long range wireless modules, IoT connectivity plans and IoT platform services.