Ambrell parent executes new credit agreement

Ambrell parent executes new credit agreement

InTEST Corp., a global supplier of test and process solutions for use in manufacturing and testing across a wide range of markets, on Monday said that it has executed a new five-year credit agreement with M&T Bank, which includes a $25 million non-revolving delayed draw term loan and a $10 million revolving credit facility.

The new agreement replaces inTEST’s existing $10 million facility with M&T Bank, which had no borrowings.

InTEST, the parent company of Rochester’s Ambrell Corp., expects to use the term loan to fund its acquisition and growth strategy and expects to use the revolving credit facility for working capital and other general corporate purposes. There are currently no borrowings under the term loan or the revolving credit facility.

Two weeks ago, inTEST said it has acquired substantially all of the assets of Z-Sciences Corp., a developer of ultra-cold storage solutions for the medical cold chain market that is based in Montreal, Canada. Terms of the acquisition were not disclosed.

“This new credit agreement allows us to capitalize on the attractive debt markets, enhances our capital structure and provides additional financial flexibility and liquidity to execute our organic and inorganic growth initiatives,” said inTest CFO and Treasurer Duncan Gilmour.

Under the agreement, interest rates are based on a bank-defined base rate plus an applicable margin, depending on leverage. Currently, this equates to a rate of roughly 2.2 percent. The credit facility and term loan are secured by substantially all of the company’s assets.

In August, inTEST reported second-quarter earnings that eclipsed its year-ago bottom line. For the quarter ended June 30, inTest reported earnings of $2.6 million, or 24 cents per diluted share, compared with earnings of $170,000 in the second quarter last year, or 2 cents per diluted share.

Shares of company stock (NYSE: INTT) midday Monday were trading down slightly at $10.92.

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