LGL Improves Its Capital Flexibility During Q3 2014
November 17 2014 - 5:19PM
Business Wire
Debt and Restricted Cash of $0 at 9/30/2014
The LGL Group, Inc. (NYSE MKT:LGL) (the “Company”) discussed its
new line of credit with City National Bank of Florida (“City
National”), which was established on September 30, 2014, and
previously announced on Form 8-K on October 2, 2014. During the
third quarter of 2014, the Company took steps to improve the
flexibility of its capital structure by eliminating its outstanding
debt and restricted cash, and by negotiating more favorable terms
for a bank line of credit with City National.
On August 29, 2014, the Company repaid its outstanding loan with
JPMorgan Chase Bank, N.A. with existing funds, and as of September
30, 2014, both debt and restricted cash were $0. Subsequently, the
Company’s subsidiary, MtronPTI, established a loan agreement with
City National on September 30, 2014, which provides a revolving
facility for up to $3 million, and requires cash collateral limited
to the amount outstanding on the loan, which can vary up or down,
and does not include any financial covenants. In addition, the
interest rate for the revolving facility is 30-day LIBOR + 2.00%
(2.15% as of 11/14/2014), which is nearly a 35% reduction in the
interest rate compared to the prior facility that was in place.
LaDuane Clifton, the Company’s Chief Financial Officer, said
“We’ve put this credit facility in place for MtronPTI as part of
securing better terms and establishing a new banking relationship
with City National that will provide greater flexibility and
position us to capitalize on opportunities that meet our investment
profile and complement our strategic direction.”
Marc Gabelli, the Company’s Chairman of the Board, said, “We are
pleased that the Company’s banking structures have been simplified
and adjusted to provide more flexibility as management increases
their focus on creating top-line growth, leading to value creation
for shareholders. We expect that establishing a new banking
relationship with City National will also aid in positioning the
Company to leverage the LGL platform as a foundation for profitable
growth.”
About The LGL Group, Inc.
The LGL Group, Inc., through its wholly-owned subsidiary
MtronPTI, manufactures and markets highly-engineered electronic
components used to control the frequency or timing of signals in
electronic circuits. These components provide low noise and base
accuracy for lab instruments, ensure reliability and security in
aerospace and defense communications, and synchronize data
transfers throughout the wireless and internet infrastructure.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota and
Noida, India, with local sales offices in Sacramento, California
and Hong Kong.
For more information on the Company and its products and
services, contact LaDuane Clifton at The LGL Group, Inc., 2525
Shader Rd., Orlando, Florida 32804, (407) 298-2000, or visit
www.lglgroup.com and www.mtronpti.com.
Caution Concerning Forward-Looking Statements
This press release may contain forward-looking statements made
in reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21 E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as “may,” “will,” “expect,” “project,” “estimate,”
“anticipate,” “plan,” “believe,” “potential,” “should,” “continue”
or the negative versions of those words or other comparable words.
These forward-looking statements are not guarantees of future
actions or performance. These forward-looking statements are based
on information currently available to us and our current plans or
expectations, and are subject to a number of uncertainties and
risks that could significantly affect current plans, anticipated
actions and our future financial condition and results. Certain of
these risks and uncertainties are described in greater detail in
our filings with the Securities and Exchange Commission. We are
under no obligation to (and expressly disclaim any such obligation
to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
The LGL Group, Inc.R. LaDuane Clifton,
407-298-2000lclifton@lglgroup.com
LGL (AMEX:LGL)
Historical Stock Chart
From Mar 2024 to Apr 2024
LGL (AMEX:LGL)
Historical Stock Chart
From Apr 2023 to Apr 2024
