P&F Industries, Inc. Announces New $22 Million Senior Credit Facility
MELVILLE, N.Y., Oct. 28, 2010 (GLOBE NEWSWIRE) -- P&F Industries, Inc. (Nasdaq:PFIN) announced today that it has entered into a new $22 million senior secured revolving credit facility and term loan facility with Capital One Leverage Finance Corporation effective October 25, 2010. The new credit facility replaces the credit facility with Citibank, N.A. and HSBC Bank USA, National Association. The revolving credit commitment of $15,910,000 is for three years and is supported by the Company's accounts receivable, inventory and machinery and equipment. The term facility consists of a three-year $6,090,000 term note that is supported by the real property at the Company's three facilities in Tampa, FL, Jupiter, FL and Cranberry Township, PA, amortizing over a 15-year schedule. Both the revolving credit commitment and term facility are cross collateralized. At the closing, in addition to paying off Citibank and HSBC in full, the Company paid off in full its two mortgages held by Wells Fargo Bank, N.A. (successor by merger to Wachovia Bank, National Association) and one-half of the principal outstanding and all accrued interest on the note held by the former sellers of the Company's Hy-Tech Machine, Inc. subsidiary. The Company also restructured certain obligations to its subordinated lenders, including extending the term of the underlying promissory notes to Richard A. Horowitz, Marc Schorr, and the former Hy-Tech sellers, to correspond with the three-year term of the credit facility, and agreeing to make current interest payments under such promissory notes, and in the case of the former Hy-Tech sellers and Marc Schorr, make partial principal payments during the term based on Company performance. Under the terms of the credit facility, the Company must adhere to certain affirmative, negative and reporting covenants, and is subject to certain events of default, which are customary in similar transactions.
Commenting on the announcement, P&F Chairman, President and CEO Richard Horowitz, stated, "Over the last several months, we have created a mutually productive relationship with Capital One. We are very happy with the terms of the new facility. The structure reduces our fixed charges and is less costly than our previous credit facility. We are especially pleased with the three-year term as it will allow management to focus more on the Company's operational and strategic needs in contrast to its devoting a great deal of time to its financial restructuring over the last several years. This facility, along with the Company's operating cash flows, are expected to create a solid foundation of liquidity and flexibility to satisfy our plans for the near future."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV