Allied Motion Secures New $125 Million Credit Facility
November 01 2016 - 4:15PM
Allied Motion Technologies Inc. (NASDAQ:AMOT), a global designer
and manufacturer of motion control products and solutions,
announced that it has obtained a new senior secured revolving
credit facility of $125 million on a 1.00% to 2.25% over LIBOR
sliding-scale rate based on leverage. The initial proceeds
from the new facility were used to redeem the Company’s $30
million, 14.5% senior subordinated notes due in 2019 and repay
$40.5 million outstanding on its previously existing revolving
credit facility and term loan. In connection with the
refinancing, the Company will recognize a $1.0 million charge for
unamortized financing costs in the fourth quarter of 2016.
Dick Warzala, Chairman and CEO of Allied Motion, said, “Our
financial team has done an excellent job in securing this new
credit facility, which considerably reduces our cost of debt and
expands our borrowing capacity by over 50%. Our intent is to
continue thoughtfully investing in our business to support organic
and acquisitive growth as we continue to expand our capabilities
and increase our market share in the precision motion solutions
industry.”
The new $125 million 5-year revolving credit facility is secured
by substantially all of the Company’s non-realty assets and is
fully and unconditionally guaranteed by certain of the Company’s
subsidiaries. At current debt levels, annual interest expense
is reduced approximately $3.3 million on a pre-tax basis, assuming
a weighted average interest rate of approximately 3.1%. On an
after-tax basis, with an effective tax rate of 31.5%, annual
interest savings is $2.2 million, or $0.24 per diluted share.
The new credit facility also includes an accordion feature,
allowing expansion of up to $175 million.
HSBC Bank USA will serve as the lead bank and administrative and
collateral agent for the new senior secured credit facility.
About Allied Motion Technologies Inc. Allied
Motion (NASDAQ:AMOT), designs, manufactures and sells precision and
specialty motion control components and systems used in a broad
range of industries within our major served markets, which include
Vehicle, Medical, Aerospace & Defense, Electronics and
Industrial. The Company is headquartered in Amherst, NY, has
global operations and sells into markets across the United States,
Canada, South America, Europe and Asia.
Allied Motion is focused on motion control applications and is
known worldwide for its expertise in electro-magnetic, mechanical
and electronic motion technology. Its products include brush
and brushless DC motors, brushless servo and torque motors,
coreless DC motors, integrated brushless motor-drives, gear motors,
gearing, modular digital servo drives, motion controllers,
incremental and absolute optical encoders, and other associated
motion control-related products. The Company’s growth
strategy is focused on becoming the motion solution leader in its
selected target markets by leveraging its “technology/know how” to
develop integrated precision motion solutions that utilize multiple
Allied Motion technologies to “change the game” and create higher
value solutions for its customers.
The Company routinely posts news and other important information
on its website at http://www.alliedmotion.com/.
Safe Harbor Statement The statements in this
news release that relate to future plans, events or performance are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward‑looking
statements include, without limitation, any statement that may
predict, forecast, indicate, or imply future results, performance,
or achievements, and may contain the word “believe,” “anticipate,”
“expect,” “project,” “intend,” “will continue,” “will likely
result,” “should” or words or phrases of similar meaning.
Forward‑looking statements involve known and unknown risks and
uncertainties that may cause actual results to differ materially
from the expected results described in the forward‑looking
statements. The risks and uncertainties include those
associated with: the domestic and foreign general business and
economic conditions in the markets we serve, including political
and currency risks and adverse changes in local legal and
regulatory environments; the introduction of new technologies and
the impact of competitive products; the ability to protect the
Company’s intellectual property; our ability to sustain, manage or
forecast its growth and product acceptance to accurately align
capacity with demand; the continued success of our customers and
the ability to realize the full amounts reflected in our order
backlog as revenue; the loss of significant customers or the
enforceability of the Company’s contracts in connection with a
merger, acquisition, disposition, bankruptcy, or otherwise; our
ability to meet the technical specifications of our customers; the
performance of subcontractors or suppliers and the continued
availability of parts and components; changes in government
regulations; the availability of financing and our access to
capital markets, borrowings, or financial transactions to hedge
certain risks; the Company's ability to realize the annual interest
expense savings from its debt refinancing; the ability to attract
and retain qualified personnel who can design new applications and
products for the motion industry; the ability to implement our
corporate strategies designed for growth and improvement in profits
including to identify and consummate favorable acquisitions to
support external growth and the development of new technologies;
the ability to successfully integrate an acquired business into our
business model without substantial costs, delays, or problems; our
ability to control costs, including the establishment and operation
of low cost region manufacturing and component sourcing
capabilities; and other risks and uncertainties detailed from time
to time in the Company’s SEC filings. Actual results, events
and performance may differ materially. Readers are cautioned
not to place undue reliance on these forward‑looking statements as
a prediction of actual results. Any forward-looking statement
speaks only as of the date on which it is made. New risks and
uncertainties arise over time, and it is not possible for us to
predict the occurrence of those matters or the manner in which they
may affect us. The Company has no obligation or intent to release
publicly any revisions to any forward looking statements, whether
as a result of new information, future events, or otherwise.
Company Contact:
Sue Chiarmonte
Allied Motion Technologies Inc.
Phone: 716-242-8634 x602
Email: sue.chiarmonte@alliedmotion.com
Investor Contact:
Deborah K. Pawlowski
Kei Advisors LLC
Phone: 716-843-3908
Email: dpawlowski@keiadvisors.com
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