Date Announced: 17 Nov 2010
New agreement replaced $14 million facility with Bank of America.
ALBUQUERQUE, NM--(Marketwire - 11/17/10) - EMCORE Corporation (NASDAQ:EMKR - News), a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and terrestrial solar power markets, today announced the establishment of a revolving credit facility with Wells Fargo. The asset-based credit facility provides for borrowings up to $35 million for working capital requirements, letters of credit and other general corporate purposes.
The credit facility is subject to certain financial covenants and a borrowing base formula and matures in November 2013. The credit facility bears interest at a rate per annum equal to the daily three month LIBOR rate for the applicable interest period plus 3.00%. The loan is secured by substantially all of the Company's assets located in the United States and is guaranteed by certain subsidiaries of the Company. The loan agreement contains customary representations and warranties, and affirmative and negative covenants.
In connection with the new facility, EMCORE terminated its prior loan agreement with Bank of America. The prior agreement provided the Company with a revolving credit facility of $14,000,000.
"We are pleased to have executed a significant increase in our credit facility. This credit facility, combined with our existing cash position and improved operating performance over the past year, ensures that we have the financial capability required to support our strategic plan," stated Mark Weinswig, Chief Financial Officer of EMCORE.
Additional information can be found in a current report on Form 8-K to be filed with the Securities and Exchange Commission.
Web Site: www.emcore.com