Presstek provides update on financing
Monday, January 11, 2010
Press release from the issuing company
GREENWICH, CT -- Presstek, Inc., a leading manufacturer and marketer of digital offset printing business solutions, today provided an update on the refinancing of its credit facility.
The Company expects to finalize a new revolving credit facility at or around the time of the closing of the sale of the Company's Lasertel subsidiary, which is currently expected to occur in the first quarter of 2010. The Company has entered into an extension, through March 31, 2010, of the Loan Modification and Forbearance Agreement with the Company's current bank lending group. The extension of this agreement is intended to ensure that the Company will continue to have access to its credit facility to meet its operating needs until the expected new credit facility is in place. Under this extension, the Company's revolving line of credit has been reduced from $27 million to $25 million, which the Company's management believes is sufficient to satisfy its current credit needs. At the end of the third quarter of 2009, the Company's total debt net of cash was $16.2 million. The Company has successfully reduced its total debt net of cash by 56 percent since its high of $37 million in March 2007.
The Company also reported that it has made the final installment payment to retire its five-year term loan, which originated in November 2004 in the original amount of $35 million.
"While we had anticipated closing on our new credit facility by December 15, our lenders have indicated a preference to finalize a new facility at the same time as the closing of our Lasertel sale. With the proceeds of the Lasertel sale and a new credit facility, we believe that we will have sufficient capital to fuel not only our current financing requirements, but our future growth as well," said Jeff Jacobson, Presstek's Chairman, President and Chief Executive Officer.