Merix Corp. Secures Up to $7.3 Million in New Borrowing Capacity in China

Strategic Insights -

Merix Corp., a US-based manufacturer of printed circuit boards, has secured up to $7.3 million in new borrowing capacity through a credit agreement with the Industrial and Commercial Bank of China. The agreement is for use by the company's Huiyang, China, manufacturing facility and provides an initial availability of about $5.3 million, with the remaining balance available within 90 days. This new credit facility, combined with the company's existing Bank of America credit facility, brings Merix's total available borrowing to $50.8 million.

Key Takeaways:

  • Merix Corp. has secured up to $7.3 million in new borrowing capacity through a credit agreement with the Industrial and Commercial Bank of China.
  • The agreement is for use by the company's Huiyang, China, manufacturing facility and provides an initial availability of about $5.3 million.
  • The remaining balance of $2 million will be available within 90 days.
  • The credit facility is secured by the building and land-use rights at the recently-expanded Huiyang facility.
  • Amounts drawn down from the facility are payable one year after the date of the first advance.
  • The credit facility can be used to fund working capital and other general purposes for Merix's Asia operations.
  • The new agreement provides Merix with an additional low-cost source of capital.
  • Merix now has a combined $50.8 million of available borrowing, with outstanding borrowings remaining at $8 million.
  • The credit agreement was announced by Merix CEO Michael Burger in a news release.

Statistics:

  • Up to $7.3 million in new borrowing capacity secured by Merix Corp.
  • Initial availability of about $5.3 million through the credit agreement.
  • $2 million available within 90 days through the credit agreement.
  • $50.8 million in combined available borrowing from both credit facilities (Merix and Bank of America).
  • $8 million in outstanding borrowings.
  • 1-year repayment period for amounts drawn down from the facility.

Sources:

  • Euclid Infotech Pvt. Ltd. (via Syndigate.info an Albawaba.com company)