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Blount International Reduces Line of Credit from $90 million to $60 million
PORTLAND, Ore. (Dec. 7, 2009) — Blount International Inc. on Monday said it has reduced the size of the company’s borrowing capacity.
The Portland-based manufacturer of outdoor products such as saw chains and lawn mower blades (NYSE: BLT) reached a deal with lenders to reduce the amount available in its revolving credit facility from $90 million to $60 million.
It arrangement also extends the maturity dates from August 2010 to February 2012 for a majority of the funds available under the credit facility.
The terms also include an increased interest rate applicable to 96 percent of the $107.5 million of term loans outstanding. About $4 million of the existing loans will retain the August 2010 maturity date.
Blount has about $48 million of its $60 million in borrowing capacity available and $58 million of cash on hand.
In a statement, Chief Financial Officer Calvin E. Jenness said the restated credit facility, joined with Blount’s ongoing cash flow, gives the company adequate liquidity to execute business plans in the next two years.
General Electric Capital Corp. served as the administrative agent in amending the credit arrangement.
Blount shares fell 5 cents, or half-a-percent, in mid-day trading to $9.80. Shares have traded between $3.76 and $10.30 in the past year.
Source: Portland (OR) Business Journal
