Magnetek Inc. (Chatsworth, CA) announced that it has received a commitment letter from Bank One Corp. to replace Magnetek's existing $16 million North American credit facility, due to expire December 17, 2003, with a new asset-based facility. Details of the new credit agreement will be made available when all necessary documentation has been completed and executed.
Magnetek also confirmed that covenant waivers on its existing credit facility expired as of July 31, 2003. Management expects to promptly complete the new transaction to refinance amounts outstanding under the current credit facility, and believes that existing cash balances and funds available from European facilities will be sufficient to fund operations during the interim period.
