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PNC, Park Electrochemical Close $52MM Credit Facility

February 01, 2013, 07:46 AM
Related: PNC Bank

Park Electrochemical announced that it has entered into a five-year revolving credit facility agreement with PNC Bank, National Association. The credit facility agreement provides for loans of up to $52 million to the company and, subject to the terms and conditions of the agreement, an interest rate on the outstanding loan balance of LIBOR plus 1.15%. The company intends to use substantially all of the funds borrowed under this credit facility to finance the payment of the special dividend.

The company commented that it elected to declare and pay this large special dividend before the end of its current fiscal year ended March 3, 2013 because of uncertainty as to whether dividends paid after the end of the fiscal year would receive the favorable non-taxable return of capital treatment for its shareholders and because of the favorable loan terms currently available to the company to finance the payment of the special dividend.

Brian Shore, Park's president and CEO, said: "I would like to take this opportunity to publicly thank PNC Bank for its responsiveness and support in providing the revolving credit facility which will be used to finance the payment of the special dividend. We are looking forward to working with PNC Bank in the future.

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