Globecomm Systems, a global provider of communications
solutions and services, announced that it entered into a new $72.5 million
committed, secured credit facility with Citibank, which continues until October
31, 2014.
The new facility replaces the Company’s existing $65
million committed credit facility with Citibank. The credit facility provides
for up to $50 million in term loans, a $15 million revolving credit facility,
$10 million in commercial letters of credit and $30 million in standby letters
of credit.
The term loan portion of the credit facility has
increased from the existing $40 million to $50 million, of which $26.3 million
continues to remain outstanding as a result of prior Company acquisitions. The
increased term loan capacity is intended to accommodate the Company’s continued
growth.
The credit facility will be used to provide bid bonds and
performance bonds relating to projects and contracts worldwide and the
revolving credit capacity supports the Company’s working capital needs.
As the Company grows and pursues acquisitions, Citibank
continues to provide a competitive and stable source of liquidity. Citibank
also provides us with critical support through its significant expertise and
resources in global financial markets,” said Andy Melfi, senior vice president
and chief financial officer, Globecomm Systems.
By Telecomlead.com Team
editor@telecomlead.com
