FREQUENCY ELECTRONICS Secures $10M Revolving Credit Facility with JPMorgan Chase
FEIM has more than doubled off its 52-week low of $18.08.
Summary
Frequency Electronics secured a new $10 million revolving credit facility with JPMorgan Chase, providing essential working capital and financial flexibility, with an option to increase to $20 million.
Key Events · Financing and Capital Events · FEIM
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New Revolving Credit Facility
The company entered into a new three-year, $10 million senior secured revolving credit facility with JPMorgan Chase Bank, N.A.
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Potential for Increased Funding
The facility includes an option to increase the aggregate amount by an additional $10 million, subject to customary conditions.
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Secured by Company Assets
The credit facility is secured by a pledge of substantially all of the company's and its subsidiary's assets.
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Use of Proceeds
Proceeds from the facility will be used for general corporate purposes and to provide general working capital.
Analysis · FEIM · Industrial Applications And Services
Frequency Electronics has entered into a new three-year, $10 million senior secured revolving credit facility with JPMorgan Chase Bank, N.A. This facility, which can be expanded by an additional $10 million, provides crucial liquidity for general corporate purposes and working capital. This is particularly important following the company's recent Q3 net income decline and positions it to capitalize on its growing backlog, as reported in May. The agreement is secured by substantially all of the company's assets and includes standard financial covenants.
At the time of this filing, FEIM was trading at $75.28 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $740.9M. The 52-week trading range was $18.08 to $79.69. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.