News Article
Emcore Announces New $35 Million Credit Facility
The firm has terminated its loan agreement with Bank of America which had a revolving credit facility of $14millionand has signed a contract for $35 with Wells Fargo.
Emcore Corporation, a leading provider of compound semiconductor-based components has 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 $14million.
"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.
Emcore Corporation is a leading provider of compound semiconductor-based components and subsystems for the fiber optics and solar power markets.
Emcore's Solar Power segment provides solar products for satellite and terrestrial applications. For satellite applications, Emcore offers high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells and fully integrated solar panels. For terrestrial applications, Emcore offers concentrating photovoltaic (CPV) systems for utility scale solar applications as well as offering its high-efficiency GaAs solar cells and CPV components for use in solar power concentrator systems.
