Artesyn Technologies Secures Credit FacilityApril 01, 2003 by Jeff Shepard
Artesyn Technologies Inc. (Boca Raton, FL) announced that it has entered into a new five-year, $35 million, revolving line of credit with Fleet Capital Corp. The new asset-backed line replaces the company’s $40 million syndicated revolving credit facility that was due to expire in March 2004.
Chief Financial Officer Richard Thompson commented, "The new facility meets Artesyn’s needs for a flexible, multi-year source of capital and completes our near-term financial restructuring goals by securing a five-year credit. We will use the facility to replace $10 million of our current borrowings and to meet liquidity needs as market demand rebounds."
The new revolving facility will bear interest initially at the London Interbank Offering Rate plus 2.25 percent and is secured by Artesyn’s domestic assets. In connection with this refinancing, the company will record in the first quarter of 2003 an after-tax extraordinary charge of approximately $600,000 relating to the write-off of certain issuance costs related to the former facility.