Allied Motion Technologies Inc.
(NASDAQ: AMOT) today announced it amended its Credit Agreement with JPMorgan Chase Bank effective October 26, 2010. The previous agreement was due to expire on October 31, 2010. The Amended Credit Agreement provides up to $8 million of revolving lines of credit, as well as significant reductions to the Company’s borrowing rates and other fees under the previous agreement. The Agreement has an initial term of two years and is available to help fund the future growth of the Company.
“Our amended Credit Agreement provides us with the ability to finance the growth of our Company both in North America and abroad at a lower overall cost to the Company,” commented Dick Smith, CFO of Allied Motion. “While the Company currently has no debt outstanding and is currently generating enough positive cash flow to fund our immediate operating needs and to build up our cash reserves, the new credit facility provides us the ability to help finance any acquisition opportunities that may arise and provides us a funding source should the economy take another significant downturn.”
Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world.
The statements in this press release that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements that may predict, forecast, indicate, or imply future results, performance, or achievements. Forward-looking statements involve known and unknown risks and uncertainties, including the risks and uncertainties detailed from time to time in the Company’s SEC filings, that may cause actual results of the Company to differ materially from the forward-looking statements. The Company has no obligation or intent to release publicly any revisions to any forward-looking statements, whether as a result of new information, future events, or otherwise.