IntriCon Amends Credit Facilities
April 15 2016 - 4:01PM
Business Wire
Increases Domestic Borrowing Capacity and
Improves Financial Flexibility
IntriCon Corporation (NASDAQ: IIN), a designer,
developer, manufacturer and distributor of miniature and
micro-miniature body-worn devices, announced today that it has
amended its credit facilities with The PrivateBank.
Highlights of the amendment include:
- Increasing IntriCon’s term loan to $6.0
million from its current balance of $4.0 million, amortized in
quarterly principal installments of $250,000;
- Increasing IntriCon’s revolving credit
facility capacity to $9.0 million from its current capacity of $8.0
million;
- Raising the inventory cap on the
borrowing base from $3.5 million to $4.0 million. Under the
revolving credit facility as amended, the availability of funds
depends on a borrowing base composed of stated percentages of the
Company’s eligible trade receivables and inventory, less a reserve;
and
- Amending the leverage ratio financial
covenants, effective March 31, 2016.
Said Mark S. Gorder, president and chief executive officer, "The
higher borrowing capacity of our amended credit facilities is an
important step in advancing our future plans. As we look ahead, we
are evaluating several options to enhance our infrastructure and
secure channel partners in the emerging value hearing health, or
VHH, channels. Further, continued core technology
investments—including development of ultra-low-power wireless
technology aimed to increase efficiencies and access through
innovative VHH distribution channels and medical biotelemetry
markets—are essential to our long-term success.
“We are pleased with the continued support of The PrivateBank.
This amendment reinforces The PrivateBank’s partnership with
IntriCon, commitment to our strategic plan and belief in our
ability to execute our growth initiatives successfully. The revised
lending structure enhances management’s ability to move quickly on
VHH opportunities that arise and support related working capital
growth requirements.”
About IntriCon CorporationHeadquartered in Arden Hills,
Minn., IntriCon Corporation designs, develops and manufactures
miniature and micro-miniature body-worn devices. These advanced
products help medical, healthcare and professional communications
companies meet the rising demand for smaller, more intelligent and
better connected devices. IntriCon has facilities in the United
States, Asia and Europe. The company’s common stock trades under
the symbol “IIN” on the NASDAQ Global Market. For more information
about IntriCon, visit www.intricon.com.
Forward-Looking StatementsStatements made in this release
and in IntriCon’s other public filings and releases that are not
historical facts or that include forward-looking terminology are
“forward-looking statements” within the meaning of the Securities
Exchange Act of 1934, as amended. These forward-looking statements
may be affected by known and unknown risks, uncertainties and other
factors that are beyond IntriCon’s control, and may cause
IntriCon’s actual results, performance or achievements to differ
materially from the results, performance and achievements expressed
or implied in the forward-looking statements. These risks,
uncertainties and other factors are detailed from time to time in
the company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for the year ended
December 31, 2015. The company disclaims any intent or obligation
to publicly update or revise any forward-looking statements,
regardless of whether new information becomes available, future
developments occur or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160415005894/en/
At IntriCon:Scott Longval, CFO,
651-604-9526slongval@intricon.comorAt PadillaCRT:Matt
Sullivan, 612-455-1709matt.sullivan@padillacrt.com
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