TORONTO, April 11, 2014 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq: SMTX ) ("SMTC"), a global electronics manufacturing services provider, today announced the signing of the Sixth Amendment ("the "Sixth Amendment") to its Revolving Credit and Security Agreement ("Loan Agreement") effective April 7, 2014.
On April 7, 2014, SMTC Corporation and certain of its subsidiaries entered into the Sixth Amendment to its Loan Agreement dated as of September 14, 2011, as subsequently amended, among SMTC Corporation, SMTC Manufacturing Corporation of California, SMTC Mex Holdings Inc., ZF Array Technology, Incorporated, and HTM Holdings, Inc., as US Borrowers, and SMTC Manufacturing Corporation of Canada, as Canadian Borrower, with PNC Bank, National Association, as Lender and as Agent, and PNC Bank Canada Branch, as Canadian Lender.
The Sixth Amendment extends the term of the Loan Agreement to January 2, 2015 and waives events of default under the Loan Agreement resulting from the previously announced inventory overstatement at SMTC's Chihuahua, Mexico facility and SMTC's failure to maintain EBITDA of not less than $3,409,000 for the six months ended December 29, 2013. The Sixth Amendment also increases the interest rate by one hundred basis points for each of the various types of loans made under the revolving credit facility, decreases the maximum limit of the revolving credit facility to $40,000,000 and amends several negative and financial covenants, including covenants such as the fixed charge coverage ratio and minimum EBITDA.
"We greatly appreciate the support of PNC and now believe SMTC is well positioned for the future," stated Sushil Dhiman, President and Chief Executive Officer.
About SMTC Corporation: SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Mexico, and China, with more than 1,800 employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments. SMTC was recognized in 2012 by Frost & Sullivan with the Global EMS Award for Product Quality Leadership and 2013 with the North American Growth Leadership Award in the EMS industry, as one of the fastest growth companies in 2012.
SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX. For further information on SMTC Corporation, please visit our website at www.smtc.com ( http://www.smtc.com/ ).
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Investor Relations Information: Sushil Dhiman President and Chief Executive Officer Telephone: (905) 413.1190 Email: Public Relations Information: Tom Reilly Director of Marketing Telephone: (905) 413.1188 Email:
