CalAmp Amends Terms of Bank Credit Facility
October 27 2008 - 7:00AM
Business Wire
CalAmp Corp. (NASDAQ:CAMP), a leading provider of wireless
products, services and solutions, today announced the amendment of
its credit facility with the Bank of Montreal and other financial
institutions. The credit facility includes a term loan, with a
principal balance of $25.3 million as of October 24, 2008, and an
undrawn working capital revolver. Under the terms of the amended
credit agreement announced today, the maturity date of the term
loan and revolver has been extended by six months to December 31,
2009 from June 30, 2009. The annual interest rate on the term loan
has been increased by 200 basis points across all levels of the
pricing grid and now stands at LIBOR plus 3.75%, or approximately
7.5% based on prevailing LIBOR. The commitment and availability of
the revolver are unchanged, except that the interest rate on future
draws on the revolver has increased by 200 basis points to LIBOR
plus 5.0% as a result of this amendment. "I am pleased with the
successful amendment of our credit facility despite today�s very
difficult credit market conditions," said Rick Gold, CalAmp�s
President and Chief Executive Officer. "We expect to continue
reducing the principal balance of the term loan with our cash flows
from operations, enabling us to transition to an asset-based loan
by the new maturity date." 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. About CalAmp Corp.
CalAmp provides wireless communications solutions that enable
anytime/anywhere access to critical data and content. The Company
serves customers in the public safety, industrial monitoring and
controls, mobile resource management, and direct broadcast
satellite markets. The Company�s products are marketed under the
CalAmp, Dataradio, SmartLink, Aercept, LandCell and Omega trade
names. For more information, please visit 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.
These forward-looking statements reflect the Company's current
views with respect to future events and financial performance and
are subject to certain risks and uncertainties, including, without
limitation, the Company's ability to refinance the term loan before
its maturity date. 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.
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