Transcat Inc., an Ogden-based service provider and distributor of calibration and measurement instruments, announced it has entered into $20 million secured revolving credit with M&T Bank Corp.
The credit facility will mature on Sept. 20, 2015. It replaces a prior one worth $15 million.
The new agreement states that the funds may be used for working capital, with up to 50 percent available for acquisitions. It also allows flexibility for the repurchasing of shares of Transcat’s common stock and the issuance of dividends.
“The new and expanded credit facility is a testament to our recent growth in addition to the strength of our balance sheet,” said Charles Hadeed, CEO of Transcat, in a statement. “We have increased our liquidity and maintain the financial flexibility needed to execute our growth strategy through acquisitions.”
Transcat shares (Nasdaq: TRNS) were trading midday Wednesday at $5.30, down nearly 4 percent from Tuesday’s close of $5.52.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.
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