This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Medical Action Industries Announces New $65 Million Credit Facility

Stocks in this article: MDCI

BRENTWOOD, N.Y., May 21, 2013 (GLOBE NEWSWIRE) -- Medical Action Industries Inc. (Nasdaq:MDCI) today announced that it has entered into a new five year credit agreement for $65 million with Wells Fargo, N.A., part of Wells Fargo & Company (NYSE:WFC), effective May 17, 2013. The new credit facility refinances and replaces the previous agreement which had been scheduled to expire in June 2014 and which had approximately $54.6 million outstanding as of May 17, 2013. The new agreement includes a revolving line of credit, a term loan A and, upon our election, a term loan B as well as the ability to increase the size of the loan in certain circumstances, such as acquisitions. This new financing provides improved pricing, tenor and operating flexibility, and positions the Company to further execute on its strategic plans.

John Sheffield, Executive Vice President and Chief Financial Officer, said, "We are very happy to continue and deepen our relationship with Wells Fargo, who was a member of our previous bank group. The benefits achieved through this agreement support and reinforce our strategic plans to position Medical Action for continued growth and to reduce our operating costs. With this new facility, we have removed many of the restrictive covenants and other obligations inherent in the previous agreement. We will experience lower interest rates, substantially reduced principal payments on the term loan component, improved working capital and will no longer be required to engage the outside consultant mandated by the previous agreement, which alone represents a nearly $2.0 million savings annually."

Under the new credit agreement, applicable interest rates are determined based upon average excess availability and, at the Company's election, either a prime rate or LIBOR-based rate. Based on current estimates, these lower interest rates should translate into an after-tax savings of approximately $0.5 million over prior year, or approximately $0.03 per share.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,749.60 +71.70 0.43%
S&P 500 1,959.53 +8.71 0.45%
NASDAQ 4,469.3990 +16.6070 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs