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Presstek announces modification of loan agreement

Monday, October 05, 2009

Press release from the issuing company

GREENWICH, CT -- Presstek, Inc., the leading manufacturer and marketer of digital offset business solutions, today announced that it entered into an agreement with its bank lenders to modify the Company's current credit agreement. Under the terms of the modification, the lenders have agreed to extend the credit agreement from its previous expiration of November 4, 2009 until December 15, 2009. The banks have also agreed to forbear from exercising their rights and remedies resulting from the Company's recently announced covenant violations under the credit agreement. The Company said that it expects to enter into a new credit facility sufficient to repay the current outstanding indebtedness on or before December 15, 2009, although there can be no assurance that the Company will enter into a new credit facility.

The modification lowers the Company's availability under the revolving portion of the facility from $45 million to $27 million. The Company said that it expects this amount to be sufficient to satisfy its current credit needs. The Company's term loan, in the original amount of $35 million, has a current balance of approximately $0.8 million, which is expected to be paid upon the expiration of the revised credit agreement. In addition, the modification amends provisions of the credit agreement, including but not limited to provisions relating to interest rate, permissible expenditures and investments that do not require lender approval and events of default, and also provides for the payment of a fee to the lenders.

 

 

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