Dynasil Announces Financing Commitment Letter with Sovereign/Santander Bank to Strengthen Capital Structure
May 12 2010 - 10:46AM
Business Wire
Dynasil Corporation of America (OTCBB: DYSL.OB), (“Dynasil” or
the “Company”), a rapidly growing manufacturer of specialized
instruments and products with applications in the homeland
security/defense, medical and industrial sectors, today announced
that following a competitive bidding process, the Company has
signed a Commitment Letter with Sovereign/Santander Bank to
completely refinance the Company’s debt structure at a considerable
interest rate savings and increases Dynasil’s lines of credit from
$1.2 million to $8 million, subject to the parties entering into
definitive loan documents.
“We are impressed with Dynasil’s exceptional track record and
phenomenal growth prospects for the future,” said David Swoyer,
Regional Executive, Corporate Banking of Sovereign/Santander Bank.
“The vision for the company and the strong management team
completes the picture. Dynasil is the type of company that
Sovereign/Santander wants to support with our global
resources.”
The financing Commitment Letter provides for a $3 million
working capital line of credit, a five-year $9 million term loan
and a $5 million acquisition line of credit. It is designed to
provide sufficient liquidity for the Company’s working capital
requirements, long-term financing needs and certain letter of
credit requirements. “I am very pleased with the confidence
expressed in the company by our new banking partner,” said Craig T.
Dunham, President and Chief Executive Officer of Dynasil. “This
Agreement, together with the lines of credit, represents a
significant milestone for the growth and success of our Company and
provides maximum financial flexibility to achieve our expansion
goals through both organic and acquisition growth,” Dunham further
affirmed. Additional details of the new Sovereign/Santander
Agreement will be outlined in the company's 10-Q filing with the
SEC.
About Dynasil: Founded in 1960, Dynasil is a manufacturer
of specialized instruments and products for a broad range of
applications markets in the medical, industrial and homeland
security/ defense sectors. Its wholly owned subsidiaries are
located in New Jersey, New York and Massachusetts.
This news release may contain forward-looking statements, such
as the completion of the new credit facility and refinancing of
existing indebtedness, usually containing the words "believe,"
"expect," “plan”, “target”, “intend” or similar expressions. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act. Future results of
operations, projections, and expectations, which may relate to this
release, involve certain risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Factors that would cause or contribute to such
differences include, but are not limited to, the factors detailed
in the Company's Annual Report or Form 10-KSB and in the Company's
other Securities and Exchange Commission filings, continuation of
existing market conditions and demand for our products.
Dynasil Corp of America (CE) (USOTC:DYSL)
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