Imation Gets $300 Million Credit Line

The pact replaces a $100 million facility.
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Imation

(IMN)

, a removable data storage media products provider, said it closed a $300 million credit facility, which extends until March 29, 2011. The facility has come in place of a $100 million facility that would have matured in December 2006.

The increased facility will be used for general corporate purposes.

The company said it had no debt outstanding and $508 million in cash and investments as of Dec. 31.

The Oakdale, Minn.-based company had earlier announced the acquisition of Memorex International for $330 million to be paid out of existing cash plus additional consideration of $5 million to $45 million paid out over the next three years. The company expects to close the deal by the middle of second quarter.

"This expanded credit facility provides Imation with additional financial flexibility,'' the company said. "We had originally targeted an expanded facility between $200 million and $250 million which was oversubscribed enabling us to take advantage of attractive credit market conditions."

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