Micron Products entered into a new three-year $9.5 million asset-based credit and security agreement with Massachusetts-based Rockland Trust, replacing the company’s previous lender.
The agreement includes a revolving line of credit of up to $5 million, a machinery and equipment term loan of $2.5 million and a real estate term loan of $2 million.
The purpose of the financing is to refinance the approximate $5.6 million of indebtedness owed to the company’s previous lender, repay subordinated debt in the approximate amount of $450,000, plus interest, and pay the expenses in respect of the financing.
“We are pleased to announce our agreement with Rockland Trust. The new agreement allows for more availability with less restrictive financial covenants while reducing the company’s blended rate of interest. Rockland Trust’s Asset Based Lending team understands Micron’s capabilities and growth potential and is very familiar with manufacturing companies of our size and in our markets,” commented Salvatore Emma, Jr. the company’s president and CEO.
Micron Products, a wholly-owned subsidiary of Micron Solutions, is a diversified contract manufacturing organization that produces highly-engineered, innovative medical device technologies requiring precision machining and injection molding.
