Dynasil Completes Refinance of Its Debt with Sovereign/Santander Bank
July 13 2010 - 9:15AM
Business Wire
Dynasil Corporation of America (OTCBB: DYSL) today announced it
completed the refinancing of its debt with Sovereign/Santander Bank
with considerable interest and cash flow savings while increasing
Dynasil’s lines of credit from $1.2 million to $8 million.
David Swoyer, Regional Executive, Corporate Banking of
Sovereign/Santander Bank said, “We are extremely pleased to partner
with Dynasil, a company with a great track record and even greater
potential.”
The Loan Agreement provides for a five-year $9 million term loan
at an interest rate of 5.58%, a $3 million working capital line of
credit at an interest rate of Prime or one month LIBOR plus 2.75%
and a $5 million acquisition line of credit at an interest rate of
one month LIBOR plus 3.5%. The $9 million term loan replaces all
outstanding debt and lowers Dynasil’s weighted average cost of debt
from 6.82% to 5.58% (a decrease of 18%). Including the repayment of
a $2 million note coming due in October 2010, there is an expected
$3 million overall reduction in loan payments over the next twelve
months, which frees up cash flow to fund growth activities and
provides liquidity for the Company’s working capital requirements,
long-term financing needs and acquisition financing.
“We are pleased to have completed this refinancing with
Sovereign/Santander Bank, which significantly increases our lines
of credit at a considerable interest rate and cash flow savings,”
said Craig T. Dunham, President and Chief Executive Officer of
Dynasil. “This strengthens our financial position and fuels our
company’s growth strategy both organically and through
acquisitions.” Additional details of the new Sovereign/Santander
Agreement will be outlined in the company's 8-K filing with the
SEC.
About Dynasil: Dynasil Corporation of America (OTCBB:
DYSL), is a provider of technology, products, services and
solutions to a broad range of customers to serve their specific
needs in the medical, industrial, and homeland security/defense
markets. The Company has operations in New Jersey, New York and
Massachusetts.
This news release may contain forward-looking statements usually
containing the words "believe," "expect," “plan”, “target”,
“intend” or similar expression, including statements relating to
future loan payments and the impact of the refinancing on Dynasil’s
financial position and growth strategy. 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-K and in the Company's other Securities and Exchange
Commission filings, continuation of existing market conditions and
demand for our products. Dynasil undertakes no obligation to update
these forward-looking statements to reflect actual results, changes
in assumptions or changes in other factors that may affect such
forward-looking statements.
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