FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


SMTC Amends Credit Facility With PNC, Others

April 14, 2014, 07:17 AM
Filed Under: Manufacturing
Related: PNC Bank, SmTC

SMTC Corporation, a global electronics manufacturing services provider, today announced the signing of the Sixth Amendment to its Revolving Credit and Security Agreement effective April 7, 2014.

On April 7, 2014, SMTC Corporation and certain of its subsidiaries entered into the Sixth Amendment to its Loan Agreement dated as of September 14, 2011, as subsequently amended, among SMTC Corporation, SMTC Manufacturing Corporation of California, SMTC Mex Holdings Inc., ZF Array Technology, Incorporated, and HTM Holdings, Inc., as US Borrowers, and SMTC Manufacturing Corporation of Canada, as Canadian Borrower, with PNC Bank, National Association, as Lender and as Agent, and PNC Bank Canada Branch, as Canadian Lender.

The Sixth Amendment extends the term of the Loan Agreement to January 2, 2015 and waives events of default under the Loan Agreement resulting from the previously announced inventory overstatement at SMTC's Chihuahua, Mexico facility and SMTC's failure to maintain EBITDA of not less than $3,409,000 for the six months ended December 29, 2013. The Sixth Amendment also increases the interest rate by one hundred basis points for each of the various types of loans made under the revolving credit facility, decreases the maximum limit of the revolving credit facility to $40,000,000 and amends several negative and financial covenants, including covenants such as the fixed charge coverage ratio and minimum EBITDA.

"We greatly appreciate the support of PNC and now believe SMTC is well positioned for the future," stated Sushil Dhiman, President and Chief Executive Officer.

SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.