BLUE BELL, Pa., April 20 /PRNewswire-FirstCall/ -- On
April 20, 2010, the Company (NYSE:
CHP) completed an Amendment to its Credit Agreement. The Amendment
increased the total size of the credit facility to $75 million by the addition of a $20 million term loan tranche. All
obligations under the term loan tranche are secured by a first
priority lien on all of the Company's personal property, as well as
that of the Guarantors, along with certain of its real estate.
Repayment of the indebtedness under the term loan tranche is
subordinate to the repayment of indebtedness owed under the
revolving credit line tranche of the credit facility.
The term loan tranche is payable on the earlier to occur of
June 6, 2013 and the termination of
the credit facility. The term loan tranche initially bears
interest at the rate of 11.25 percent plus the greater of (i) LIBOR
and (ii) 3 percent. The term loan tranche of the credit
facility is subject to the same customary affirmative and negative
covenants, as well as financial covenants, as stated in the Credit
Agreement. In addition, for the one-year period following the
Amendment, the Company has a requirement to maintain minimum excess
availability under the Credit Agreement of $15 million. The Company expects to
maintain excess availability above this $15
million minimum. There are also minimum EBITDA
requirements subject to an event of default, beginning with the
Company's quarter ended April 30,
2011. The Credit Agreement, as amended by the
Amendment, still requires the Company to maintain a minimum fixed
charge coverage ratio of 1.1:1.0 on a consolidated basis which
becomes applicable only if the availability under the revolving
credit line tranche falls below $10
million.
About C&D Technologies:
C&D Technologies, Inc. provides solutions and services for
the switchgear and control (utility), telecommunications, and
uninterruptible power supply (UPS), as well as emerging markets
such as solar power. C&D Technologies engineers, manufactures,
sells and services fully integrated reserve power systems for
regulating and monitoring power flow and providing backup power in
the event of primary power loss until the primary source can be
restored. C&D Technologies' unique ability to offer complete
systems, designed and produced to high technical standards, sets it
apart from its competition. C&D Technologies is headquartered
in Blue Bell, PA. For more
information about C&D Technologies, visit
http://www.cdtechno.com.
Forward-looking Statements:
This press release may contain forward-looking statements
(within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934), which are
based on management's current expectations and are subject to
uncertainties and changes in circumstances. Words and expressions
reflecting something other than historical fact are intended to
identify forward-looking statements, but are not the exclusive
means of identifying such statements. Factors that appear with the
forward-looking statements, or in the company's Securities and
Exchange Commission filings (including without limitation the
company's annual report on Form 10-K for the fiscal year ended
January 31, 2009, or the quarterly
and current reports filed on Form 10-Q and Form 8-K thereafter),
could cause the company's actual results to differ materially from
those expressed in any forward-looking statements made herein.
SOURCE C&D Technologies, Inc.