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Allied Motion Secures New $225 Million Credit Facility
February 12, 2020
Source: Business Wire
Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or “Company”), a designer and manufacturer that sells precision and specialty controlled motion products and solutions to the global market, announced that it has obtained a new senior secured revolving credit facility of $225 million with an accordion feature allowing expansion up to $300 million. Borrowings will bear interest on a sliding-scale rate based on leverage of 1.00% to 1.75% over LIBOR.
“This new facility reduces our cost of debt, provides greater flexibility and enhances our ability to continue executing our growth strategy, both organic and acquisitive,” commented Michael R. Leach, Chief Financial Officer. “We will continue to prudently manage our balance sheet through our disciplined capital allocation strategy.”
The new $225 million, five-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. HSBC Bank USA will serve as the lead bank and administrative and collateral agent for the new senior secured credit facility. At current debt and leverage levels, annual net interest expense is reduced approximately $0.25 million on a pre-tax basis.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision and specialty controlled motion products and solutions used in a broad range of industries within our major served markets, which include Vehicle, Medical, Aerospace & Defense, 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 controlled motion 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, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision 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/.
Allied Motion Technologies Inc.
Phone: 716-242-8634 x602
Deborah K. Pawlowski
Kei Advisors LLC