Sparton Corporation announced that the company and certain wholly-owned subsidiaries entered into an Amended and Restated Credit and Guaranty Agreement and Security Agreement, dated September 11, 2014, with BMO Harris Bank N.A., US Bank National Association, Bank of America, N.A., Suntrust Bank, Fifth Third Bank, Associated Bank, N.A., Keybank National Association, and Wintrust Bank. BMO Harris Bank will be the lead agent for the lenders in a syndication arranged by BMO Capital Markets.
The agreement replaces the company’s existing Credit and Guaranty Agreement with a $200 million revolving line-of-credit facility to support the Company’s future acquisitions, working capital needs and other general corporate purposes. The Company has the right to request an increase of the facility in an amount of up to $100 million. It is secured by substantially all assets of the Company and its subsidiaries and has a term of five years, expiring on September 11, 2019.
“We are pleased to have BMO Harris Bank lead the syndication effort with our new banking partners in providing support towards our operating needs and future growth ambitions. The $200 million in credit facilities, coupled with its flexible accordion feature of an additional $100 million, adds to our already strong liquidity position. With access to these funds in place, we plan to continue executing on complementary and compatible acquisitions as a key part of our 2015 Strategic Growth Plan, and its successor, our 2020 Vision, that will be initiated later this year,” commented Cary B. Wood, President & CEO of Sparton.
Sparton Corporation, now in its 115th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has nine manufacturing locations and four engineering design centers worldwide.