Allied Motion Secures New $225 Million Credit Facility
February 12 2020 - 4:15PM
Business Wire
Refinancing
expands borrowing capacity nearly 30%, reduces cost of debt and
enhances flexibility to drive growth strategy
Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion”
or “Company”), a designer and manufacturer that sells precision and
specialty controlled motion products and solutions to the global
market, announced that it has obtained a new senior secured
revolving credit facility of $225 million with an accordion feature
allowing expansion up to $300 million. Borrowings will bear
interest on a sliding-scale rate based on leverage of 1.00% to
1.75% over LIBOR.
“This new facility reduces our cost of debt, provides greater
flexibility and enhances our ability to continue executing our
growth strategy, both organic and acquisitive,” commented Michael
R. Leach, Chief Financial Officer. “We will continue to prudently
manage our balance sheet through our disciplined capital allocation
strategy.”
The new $225 million, five-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. HSBC Bank USA will serve as the lead bank and
administrative and collateral agent for the new senior secured
credit facility. At current debt and leverage levels, annual net
interest expense is reduced approximately $0.25 million on a
pre-tax basis.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells
precision and specialty controlled motion products and solutions
used in a broad range of industries within our major served
markets, which include Vehicle, Medical, Aerospace & Defense,
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 controlled motion 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, active (electronic) and
passive (magnetic) filters for power quality and harmonic issues,
and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled
motion solutions leader in its selected target markets by
leveraging its “technology/know how” to develop integrated
precision 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. Examples of forward-looking
statements include, among others, statements concerning the
Company's ability to realize the annual interest expense savings
from its debt refinancing; growth prospects; other potential
benefits of the debt refinancing; statements the Company makes
regarding expected operating results, anticipated levels of capital
expenditures, the Company’s belief that it has sufficient liquidity
to fund its business operations, expectations regarding income tax
rates and expectations with respect to the conversion of backlog to
sales. Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
the Company’s current beliefs, expectations and assumptions
regarding the future of the Company’s business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and many of which are outside of the Company’s control. The
Company’s actual results and financial condition may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, general
economic and business conditions, conditions affecting the
industries served by the Company and its subsidiaries, conditions
affecting the Company's customers and suppliers, competitor
responses to the Company's products and services, the overall
market acceptance of such products and services, the pace of
bookings relative to shipments, the ability to expand into new
markets and geographic regions, the success in acquiring new
business, the impact of changes in income tax rates or policies and
other factors disclosed in the Company's periodic reports filed
with the Securities and Exchange Commission. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200212005827/en/
Company: Sue Chiarmonte Allied Motion Technologies Inc.
Phone: 716-242-8634 x602 Email: sue.chiarmonte@alliedmotion.com
Investors: Deborah K. Pawlowski Kei Advisors LLC Phone:
716-843-3908 Email: dpawlowski@keiadvisors.com
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