Merix Announces New China-Based Credit Facility
June 29 2009 - 5:14PM
Marketwired
Merix Corporation (NASDAQ: MERX), a leading provider of
high-reliability printed circuit boards, today announced a credit
agreement with Industrial and Commercial Bank of China (ICBC) that
provides for up to 50 million RMB (U.S. dollar equivalent of
approximately $7.3 million) of borrowing under a credit facility
with the Company's Huiyang, China-based factory. The credit
facility is secured by the building and land-use lease rights at
Merix' recently expanded Huiyang manufacturing facility. Initial
availability is 36 million RMB (approximately US$5.3 million). The
balance of the borrowings under the credit facility is anticipated
to be fully available within 90 days upon perfection of the
security interest in the building. Amounts drawn against the credit
facility are payable one year after the date of the first advance
and can be used to fund working capital and other general corporate
purposes for Merix' operations in Asia.
"As Merix continues to expand its global footprint we are
seeking to develop and grow relationships in Asia. We are pleased
with and appreciate the opportunity to establish a banking
relationship with Industrial and Commercial Bank of China, a bank
with a significant local presence throughout China," said Michael
D. Burger, President and Chief Executive Officer. "The new
agreement provides the Company with an additional low cost source
of capital along with our existing Bank of America bank credit
facility. The combination of these credit agreements gives Merix
increased liquidity, which provides further flexibility to optimize
the capital structure and support our growth in both Asia and the
United States. The combined bank credit lines today provide the
Company with approximately $50.8 million of available borrowing.
Total outstanding borrowings under the bank credit facilities
remains at $8 million, which is unchanged from the amount we
reported for our last fiscal quarter that ended on February 28,
2009."
About Merix
Merix is a leading manufacturer of technologically advanced
multilayer rigid printed circuit boards for use in sophisticated
electronic equipment. Merix provides high-performance materials,
quick-turn prototype, pre-production and volume production services
to its customers. Principal markets served by Merix include
communications and networking, computing and peripherals, test,
industrial and medical, defense and aerospace, and automotive end
markets in the electronics industry. Additional corporate
information is available on the internet at www.merix.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Securities Litigation Reform Act of 1995 relating to
the Company's business operations and prospects and are made
pursuant to the safe harbor provisions of the federal securities
laws. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those anticipated by these forward-looking statements. The
forward-looking statements in this news release are based on
current expectations, and Merix Corporation does not undertake to
update any such factors or to publicly announce developments or
events relating to the matters described herein.
Merix Investor Relations Contact: Allen Muhich Vice President -
Finance 503.716.3700
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