Home | Business
EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic components and communications equipment, today announced that it is in the final stages of obtaining a new credit facility with Wells Fargo Bank, acting thorough its Wells Fargo Business Credit operating division. EMRISE believes that the new credit facility, which is expected to be a 3-year credit facility and provide at least $5 million of revolving credit at an annual interest rate equal to the prime rate plus 1.0%, will be sufficient to meet its domestic financing needs. EMRISE believes that the new credit facility will provide for a higher advance rate on both receivables and inventories than its previous Wells Fargo Bank credit facility and will provide it with greater flexibility and financing for domestic acquisitions when complemented with financing support through its foreign credit sources in Europe. EMRISE believes that it will be able to complete the documentation of its credit facility and secure its financing with Wells Fargo Business Credit prior to the expiration of the forbearance term provided by Wells Fargo Bank, as discussed below. EMRISE expects that a portion of the proceeds from this new credit facility will be used to repay amounts owing to Wells Fargo Bank under its current credit facility. EMRISE also announced that on November 13, 2006 it received a notice of default and demand for payoff from Wells Fargo Bank relating to EMRISE’s current $1.5 million credit facility and that on November 14, 2006, City National Bank orally terminated its debt commitment letter that was entered into on October 11, 2006. EMRISE is obligated to pay all amounts owing under the Wells Fargo Bank credit facility by November 20, 2006. EMRISE is in the process of negotiating a forbearance agreement with Wells Fargo Bank under which Wells Fargo Bank is expected to agree not to exercise its rights under the notice of default through December 1, 2006. About EMRISE CORPORATION EMRISE Corporation is a multi-national manufacturer of defense and aerospace electronic components and communications equipment. EMRISE’s electronic components group, which consists of EMRISE Electronics Corporation and its international subsidiaries, provides custom power conversion, RF components and subsystems as well as digital and rotary switches to the North American, European and Asian electronic components market. These products are primarily used for defense, aerospace and industrial applications. EMRISE’s communications equipment group, consisting of CXR Larus Corporation and its subsidiary CXR Anderson Jacobson, provides network access, satellite timing and synchronization and transmission products as well as communications test equipment to the North American, European and Asian communications industry. Founded in 1983, EMRISE operates out of facilities in the United States, England, France and Japan. As of October 31, 2006 EMRISE had a total of 298 employees in its various subsidiaries and divisions. Listed on NYSE Arca under the ticker symbol: ERI. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, EMRISE’s ability to negotiate a forbearance of Wells Fargo Bank’s notice of default and demand for payoff; EMRISE’s ability to successfully negotiate a replacement credit facility with Wells Fargo Business Credit or any other financial institution, the ability of the proposed credit facility together with EMRISE’s foreign credit facilities to support future domestic acquisitions, general market and economic conditions, changes in technology and governmental regulations and policies, competitive products and services, unforeseen technical issues and those factors contained in the “Risk Factors” Section of EMRISE’s Form 10-K for the year ended December 31, 2005.
Article Source: http://www.content.onlypunjab.com
For more information visit www.emrise.com.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
