ELK GROVE VILLAGE, Ill., July 21. 10, 2022 (GLOBE NEWSWIRE) — SigmaTron International, Inc. (NASDAQ, SGMA), an electronics manufacturing services company (the “Company”), today announced that it has amended its existing credit agreement with JPMorgan Chase Bank, NA (“JPMorgan Chase”) and signed a new term loan with The Private Credit Group of TCW Asset Management Company LLC, as administrative agent, and the lenders parties thereto (collectively, “TCW”). The two agreements and a related intercreditor agreement were entered into on July 18, 2022.
Regarding the amendment with JPMorgan Chase, the credit agreement has been extended and now expires in 5 years on July 18, 2027. In addition, the maximum revolving line of credit available has been increased to $70,000,000 based on the current borrowing base and eligible collateral.
Regarding the new term loan with TCW, the principal amount is $40,000,000 and has a term of 5 years.
Both facilities are secured by assets of the Company and certain of its subsidiaries. The parties have entered into an intercreditor agreement to govern the respective priorities, rights and remedies of the lenders with respect to lien.
Commenting on the Amended Credit Agreement and New Term Loan, Gary R. Fairhead, Chief Executive Officer and Chairman of the Board, said, “I am pleased to announce these developments as we move toward the proceeds from the new term loan are intended for working capital needs that have been created in our industry due to supply chain issues and resulting inventory growth, and will support both new customers and new programs from existing customers in our core electronics manufacturing services business, as well as the anticipated growth of Wagz, Inc., our wholly-owned pet technology company.
“We appreciate the trust and societal support shown by both JPMorgan Chase and TCW. We have many exciting opportunities in both business segments and we look forward to seizing them. »
About SigmaTron International, Inc.
Based in Elk Grove Village, Illinois, SigmaTron International, Inc. is an electronics manufacturing services company that provides printed circuit board assemblies and fully assembled electronic products. SigmaTron International, Inc. operates manufacturing facilities in Elk Grove Village, Illinois; Acuna, Chihuahua and Tijuana Mexico; Union City, California; Suzhou, China, and the city of Biên Hòa, Vietnam. SigmaTron International, Inc. has engineering and materials procurement offices in Elgin, Illinois and Taipei, Taiwan.
Note: This press release contains forward-looking statements. Words such as “continue”, “anticipate”, “should”, “expect”, “believe”, “plan” and similar expressions identify forward-looking statements. These forward-looking statements are based on the Company’s current expectations. Because these forward-looking statements involve risks and uncertainties, the Company’s plans, actions and actual results could differ materially. These statements should be evaluated in the context of the direct and indirect risks and uncertainties inherent in the business of the Company, including, but not necessarily limited to, the risks inherent in any merger, acquisition or business combination (including the December 31, 2021 transaction with Wagz); the Company’s continued dependence on certain major customers; continued market acceptance of the products and services offered by the Company and its customers; pricing pressures from the Company’s customers, suppliers and market; the activities of competitors, some of whom may have greater financial or other resources than the Company; variability in the Company’s results of operations; the results of long-lived asset impairment tests; the ability to realize expected benefits from acquisitions as well as acquisition expenses; collection of aging trade receivables; variability in the requirements of the Company’s customers; the impact of inflation on the Company’s results of operations; the availability and cost of necessary components and materials; the impact that acts of war can have on the supply chain; the ability of the Company and its customers to keep abreast of technological changes within its industries; regulatory compliance, including conflict minerals; the continued availability and adequacy of the Company’s credit arrangements; the ability to meet the Company’s financial and restrictive covenants under its loan agreements; changes in US, Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the Company’s business; turbulence in the global economy and financial markets; the spread of COVID-19 and its variants (commonly referred to as “COVID-19”) which threatened the financial stability of the Company by disrupting the Company’s global supply chain, and caused plant closures or reduced operations, thereby reducing the production of these facilities; the continued availability of scarce raw materials, exacerbated by global supply chain disruptions, necessary to manufacture products by the Company; the stability of the economic, labor and political systems and conditions of the United States, Mexico, China, Vietnam and Taiwan; the global business disruption caused by the Russian invasion of Ukraine and related sanctions; exchange rate fluctuations; and the Company’s ability to manage its growth. These and other factors that could affect the Company’s future business and results of operations are identified in the Company’s Annual Report on Form 10-K and, as risk factors, may be detailed from time to time. to another in the company’s filings with the Securities and Exchange Commission. . These statements speak as of the date of such filings, and the Company undertakes no obligation to update these statements in light of future events or otherwise, except as required by law.
For more information, contact:
SigmaTron International, Inc.
James J. Reiman