- Refinancing expected to reduce annual cash interest expense by approximately $3.3 million on a pre-tax basis ($2.2 million after tax)
- New facility provides greater financial flexibility for acquisitions
AMHERST, N.Y., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Allied Motion Technologies Inc. (NASDAQ:AMOT), a global designer and manufacturer of motion control products and solutions, announced that it has obtained a new senior secured revolving credit facility of $125 million on a 1.00% to 2.25% over LIBOR sliding-scale rate based on leverage. The initial proceeds from the new facility were used to redeem the Company’s $30 million, 14.5% senior subordinated notes due in 2019 and repay $40.5 million outstanding on its previously existing revolving credit facility and term loan. In connection with the refinancing, the Company will recognize a $1.0 million charge for unamortized financing costs in the fourth quarter of 2016.
Dick Warzala, Chairman and CEO of Allied Motion, said, “Our financial team has done an excellent job in securing this new credit facility, which considerably reduces our cost of debt and expands our borrowing capacity by over 50%. Our intent is to continue thoughtfully investing in our business to support organic and acquisitive growth as we continue to expand our capabilities and increase our market share in the precision motion solutions industry.”
The new $125 million 5-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. At current debt levels, annual interest expense is reduced approximately $3.3 million on a pre-tax basis, assuming a weighted average interest rate of approximately 3.1%. On an after-tax basis, with an effective tax rate of 31.5%, annual interest savings is $2.2 million, or $0.24 per diluted share. The new credit facility also includes an accordion feature, allowing expansion of up to $175 million.
HSBC Bank USA will serve as the lead bank and administrative and collateral agent for the new senior secured credit facility.
About Allied Motion Technologies Inc.
Allied Motion (NASDAQ:AMOT), designs, manufactures and sells precision and specialty motion control components and systems used in a broad range of industries within our major served markets, which include Vehicle, Medical, Aerospace & Defense, Electronics 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 motion control 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, and other associated motion control-related products. The Company’s growth strategy is focused on becoming the motion solution leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision motion 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, and may contain the word “believe,” “anticipate,” “expect,” “project,” “intend,” “will continue,” “will likely result,” “should” or words or phrases of similar meaning. Forward‑looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from the expected results described in the forward‑looking statements. The risks and uncertainties include those associated with: the domestic and foreign general business and economic conditions in the markets we serve, including political and currency risks and adverse changes in local legal and regulatory environments; the introduction of new technologies and the impact of competitive products; the ability to protect the Company’s intellectual property; our ability to sustain, manage or forecast its growth and product acceptance to accurately align capacity with demand; the continued success of our customers and the ability to realize the full amounts reflected in our order backlog as revenue; the loss of significant customers or the enforceability of the Company’s contracts in connection with a merger, acquisition, disposition, bankruptcy, or otherwise; our ability to meet the technical specifications of our customers; the performance of subcontractors or suppliers and the continued availability of parts and components; changes in government regulations; the availability of financing and our access to capital markets, borrowings, or financial transactions to hedge certain risks; the Company's ability to realize the annual interest expense savings from its debt refinancing; the ability to attract and retain qualified personnel who can design new applications and products for the motion industry; the ability to implement our corporate strategies designed for growth and improvement in profits including to identify and consummate favorable acquisitions to support external growth and the development of new technologies; the ability to successfully integrate an acquired business into our business model without substantial costs, delays, or problems; our ability to control costs, including the establishment and operation of low cost region manufacturing and component sourcing capabilities; and other risks and uncertainties detailed from time to time in the Company’s SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward‑looking statements as a prediction of actual results. 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.
Company Contact: Sue Chiarmonte Allied Motion Technologies Inc. Phone: 716-242-8634 x602 Email: firstname.lastname@example.org Investor Contact: Deborah K. Pawlowski Kei Advisors LLC Phone: 716-843-3908 Email: email@example.com
Source:Allied Motion Technologies Inc