Daktronics Reaches Agreement to Extend Near-Term Credit Facility Maturity
January 25 2023 - 9:04AM
Daktronics, Inc. (NASDAQ-DAKT) today announced it has entered into
an amendment to its credit agreement with its current lender, U. S.
Bank National Association, to extend the maturity of $10 million of
its $45 million credit facility to May 1, 2023. The remaining $35
million of the credit facility matures on April 29, 2025. The
extension of liquidity is the result of the efforts of an
independent Strategy and Financing Review Committee of the
Daktronics Board of Directors (the “Committee”), which was formed
in December 2022, to address the Company’s near-term credit needs
and to examine alternatives for strengthening the Company’s
longer-term financial structure and liquidity profile.
The Committee, comprised of the independent directors of the
Company, is chaired by Howard I. Atkins, who joined the Board on
December 7, 2022, at the recommendation of one of the Company’s
largest shareholders, Prairieland Holdco, LLC. Mr. Atkins is the
former Senior Executive Vice President and Chief Financial Officer
of Wells Fargo & Company, where he was responsible for Wells
Fargo’s financial management functions including during the
financial crisis of 2008 and 2009. The Committee has hired
financial and legal advisors to assist it with its activities.
“This maturity extension is the first step in a concerted effort
on the part of the management team, overseen by the Committee,”
said Mr. Atkins.” We are now shifting our focus to reviewing
opportunities for additional longer-term liquidity to generate
profitable growth. Together with our financial and legal advisors,
our efforts include reviewing several financing proposals the
Company has already received, as well as engaging with other
potential financing sources.”
There can be no assurance that the Committee’s process will
result in any transaction or other alternative outcome. There is no
set timetable for the conclusion of this process, and the Company
does not intend to disclose or provide an update concerning
developments relating to this process until it determines that
further disclosure is appropriate or necessary.
About DaktronicsDaktronics helps its customers to impact their
audiences throughout the world with large-format LED video
displays, message displays, scoreboards, digital billboards, audio
systems and control systems in sport, business and transportation
applications. Founded in 1968 as a USA-based manufacturing company,
Daktronics has grown into the world leader in audiovisual systems
and implementation with offices around the globe. Discover more at
www.daktronics.com.
SAFE HARBOR STATEMENTCautionary Notice: In addition to
statements of historical fact, this news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and is intended to enjoy
the protection of that Act. These forward-looking statements
reflect the Company's expectations or beliefs concerning future
events, including our ability to consummate a transaction with a
potential financing source. These forward-looking statements are
not guarantees of future results. The Company cautions that these
and similar statements involve risk and uncertainties, many of
which are difficult to predict, are beyond our control and could
cause actual results to differ materially from our expectations,
including, but not limited to, changes in economic and market
conditions, management of growth, timing and magnitude of future
contracts and orders, fluctuations in margins, the introduction of
new products and technology, the impact of adverse weather
conditions, increased regulation and other risks described in the
company's SEC filings, including its Annual Report on Form 10-K for
its 2022 fiscal year. Forward-looking statements are made
in the context of information available as of the date stated. The
Company disclaims and undertakes no obligation to update or revise
any forward-looking statement in this news release, except as
required by applicable law or regulation.
MEDIA RELATIONS
Justin OchsnerPublic Relations/MarketingTel 605-692-0200Email
justin.ochsner@daktronics.com
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