Video Display Corp Signs New Credit Agreement
30 12월 2010 - 2:54AM
Video Display Corporation (Nasdaq:VIDE), a leader in innovative
display technology, today announced that the Company had entered
into a new senior secured three-year credit agreement among the
Company, RBC Bank and Georgia's Community & Southern Bank with
RBC bank acting as the Administrative Agent. The new facility
provides a $24.0 million package of debt instruments including a
revolving credit facility with a $17.5 million cap based upon
inventory and receivable advance levels, and two term loans
totaling $6.5 million. The lenders under the facility and their
affiliates have various other relationships with the Company and
its subsidiaries involving the provision of financial services,
including cash management, loans, letter of credit and bank
guarantee facilities as well as other banking services.
Additionally RBC Bank acted as sole lender under the Company's
previous Credit Agreement, as defined below. The revolving
credit portion of the facility terminates on November 23,
2013. The maturity dates of the two amortizing term loans are
December 2015 and December 2025. Interest on facility advances
are based on a matrix of debt coverage ratios. Interest is
charged at a rate equal to 2.75% to 3.25% above one-month LIBOR for
the applicable interest period or a minimum floor rate of 4.00%,
each as more fully described in the Agreement. Based on the
Company's current debt coverage ratios, the initial rate of
interest will be charged at the minimum base rate of
4.00%. The facility includes various covenants, limitations
and events of default customary for similar facilities for
similarly rated borrowers. As of the date of filing the
current report on Form 8-K, draws in the approximate amount of $13
million in revolving credit advances have been made and are
outstanding under the facility.
The Agreement replaces the Company's previous credit agreement
dated September 26, 2008 as amended (the "Previous Credit
Agreement"), which established two revolving credit facilities in
the amount of $17.0 million to the parent Company and $3.5 million
to the Company's subsidiary Fox International Ltd., Inc., and a
term loan with a remaining balance of $678,000, all of which were
terminated by payment from the proceeds of the new Credit Facility
on December 23, 2010. For a complete description of the terms
and conditions of these agreements, please refer to the Loan and
Security Agreement and related documents, which is incorporated
herein by reference and attached to this Current Report on Form 8-K
as Exhibit 10(h).
Company CFO, Greg Osborn, commented, "We are pleased to welcome
Community and Southern Bank as a partner with RBC Bank in providing
an expanded availability of credit and lengthened maturities for
repayment terms in the new facility. With the long term
facility in place, the Company can now move forward to grow its
business in a more secure environment."
About Video Display
Video Display Corporation designs, develops and manufactures
unique solutions for display requirements for military, medical and
industrial use with emphasis on high end training and simulation
applications. Its product offerings include ruggedized CRT and
AMLCD displays as well as complete projection systems utilizing
VDC's Marquee(TM) line of projectors. Video Display Corporation
operates eight display design and manufacturing plants plus
additional sales facilities throughout the United States and
Europe.
CONTACT: Video Display Corporation, Atlanta
Ronald D. Ordway
770-938-2080
Video Display (PK) (USOTC:VIDE)
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