Daily News: April 6, 2016

Manufacturers Provides Financing to Support Transcat Acquisition

Transcat acquired Excalibur Engineering, a provider of calibration services, new and used test equipment and product rentals for $7.35 million in cash.

Concurrent with this transaction, Transcat expanded its borrowing capacity by adding a $10 million term note to its bank credit facility. The term note is a five-year note with fixed principal payments plus interest. After funding the Excalibur transaction, the company will have approximately $28 million in outstanding borrowings under its bank credit facility.

Transcat is a provider of accredited calibration and compliance services and value-added distributor of professional grade handheld test, measurement and control instrumentation,

According to a related 8-K filing, Manufacturers and Traders Trust (MTT) amended Transcat’s credit facilities to increase borrowings available for acquisitions to be financed with the revolving credit facility and term loan for fiscal year ending March 25, 2017 from $15 million to $20 million and $15 million for each fiscal year ending thereafter. In addition, MTT agreed to issue a $10 million term loan to Transcat.