CalAmp Announces Amendment to Bank Credit Agreement
February 29 2008 - 5:09PM
Business Wire
CalAmp Corp. (NASDAQ:CAMP), a leading provider of wireless
products, services and solutions, today announced the amendment of
its credit agreement with the Bank of Montreal and other financial
institutions. As previously disclosed, the net loss CalAmp reported
in its first quarter of fiscal 2008 for the period ended May 31,
2007 caused the Company to become noncompliant with the financial
covenants under the original bank credit agreement, which was
comprised of a term loan and a $10 million working capital
revolver. As a result, CalAmp has been restricted from borrowings
under the working capital revolver pending receipt of a waiver from
the lenders and/or an amendment of the original credit agreement.
Under the terms of the amended credit agreement announced today,
the lenders have agreed to waive the financial covenant violations
that existed for the first three quarters of fiscal 2008. In
addition, financial covenants contained in the original credit
agreement, including a fixed charge coverage ratio, a leverage
ratio and minimum net worth requirement, have been eliminated and
replaced with new covenants that require minimum levels of
consolidated EBITDA and Wireless DataCom Division revenues.�The
amendment also makes available new borrowings of up to $1 million
under the working capital revolver, while cash proceeds of $3.5
million from the August 2007 sale of CalAmp�s TelAlert software
business previously held in escrow, will be applied to principal of
the term loan. The remaining balance of the term loan is
approximately $27.5 million after giving effect to the application
of the funds in escrow. The credit agreement as amended will have a
maturity date of June 30, 2009, with financial incentives to repay
all borrowings by December 31, 2008. The reader is referred to a
Form 8-K that will be filed shortly with the Securities and
Exchange Commission for a more complete description of the terms
and conditions of this credit agreement amendment. �Completing this
amendment to our credit agreement improves our near-term financial
and operational flexibility as we execute our strategy to return
CalAmp to profitability,� said Rick Vitelle, CalAmp�s Chief
Financial Officer. About CalAmp Corp. CalAmp is a leading provider
of wireless communications products that enable anytime/anywhere
access to critical information, data and entertainment content.
With comprehensive capabilities ranging from product design and
development through volume production, CalAmp delivers
cost-effective high quality solutions to a broad array of customers
and end markets. CalAmp is a supplier of Direct Broadcast Satellite
(DBS) outdoor customer premise equipment to the U.S. satellite
television market. The Company also provides wireless data
communication solutions for the telemetry and asset tracking
markets, private wireless networks, public safety communications
and critical infrastructure and process control applications. For
additional information, please visit the Company�s website at
www.calamp.com. Forward-Looking Statement Statements in this press
release that are not historical in nature are forward-looking
statements that involve known and unknown risks and uncertainties.
Words such as "may", "will", "expect", "intend", "plan", "believe",
"seek", "could", "estimate", "judgment", "targeting", "should",
"anticipate", "goal" and variations of these words and similar
expressions, are intended to identify forward-looking statements.
Actual results could differ materially from those implied by such
forward-looking statements. Although CalAmp believes the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be attained. CalAmp undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
CalAmp (NASDAQ:CAMP)
Historical Stock Chart
From May 2024 to Jun 2024
CalAmp (NASDAQ:CAMP)
Historical Stock Chart
From Jun 2023 to Jun 2024