Transcat, Inc. (the “Company”) (NASDAQ: TRNS), a leading distributor of professional grade handheld test, measurement and control instruments and accredited provider of calibration, repair, inspection and other compliance services, announced today that it has entered into a new secured revolving credit facility with Manufacturers and Traders Trust Company (M&T Bank).
The Credit Facility Agreement provides a $20 million secured revolving credit facility that matures on September 20, 2015. Borrowings under the facility may be used for working capital, with up to 50% available for acquisitions. The facility also provides the flexibility to repurchase shares of the Company’s common stock and the issuance of dividends.
Charles P. Hadeed, Chief Executive Officer of Transcat, commented, “The new and expanded credit facility is a testament to our recent growth in addition to the strength of our balance sheet. We have increased our liquidity and maintain the financial flexibility needed to execute our growth strategy through acquisitions.”
The facility contains certain financial and other covenants typical for this type of facility. Transcat’s ability to borrow under the facility is subject to compliance with the covenants and other restrictions on an ongoing basis. The principle financial covenants limit the Company’s level of indebtedness and debt coverage ratios.
The new Credit Facility Agreement replaces the Company’s prior $15 million secured revolving credit facility.
Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and compliance services including analytical instrument qualifications, equipment and process validation. Targeted industries include life science, biotechnology, medical device, pharmaceutical and other FDA-regulated industries, industrial manufacturing, energy and utilities, chemical manufacturing and other industries. Throughout its 17 strategically located centers of excellence in the United States, Canada and Puerto Rico, Transcat delivers precise services with reliable turn-around times. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be among the best in the industry.