inTEST, a global supplier of test and process solutions for use in manufacturing and testing across a range of markets, including automotive, defense/aerospace, industrial, medical, semiconductor and telecommunications, executed a new five-year credit agreement with M&T Bank. The agreement includes a $25 million non-revolving delayed draw term loan and a $10 million revolving credit facility. This new agreement replaces inTEST’s existing $10 million facility with M&T Bank, which had no borrowings.
inTEST expects to use the term loan to fund its acquisition and growth strategy and expects to use the revolving credit facility for working capital and other general corporate purposes. There are currently no borrowings under the term loan or the revolving credit facility.
“This new credit agreement allows us to capitalize on the attractive debt markets, enhances our capital structure and provides additional financial flexibility and liquidity to execute our organic and inorganic growth initiatives,” Duncan Gilmour, CFO and treasurer of inTEST, said.
Under this agreement, interest rates are based on SOFR or a bank-defined base rate plus an applicable margin, depending on leverage. Currently, this equates to a rate of approximately 2.2%. The credit facility and term loan are secured by substantially all of inTEST’s assets.
