FITCHBURG, Mass., Jan. 04, 2018 (GLOBE NEWSWIRE) -- Micron Products, Inc., a wholly owned subsidiary of Micron Solutions, Inc. (NYSE American:MICR), entered into a new three-year $9,500,000 Asset Based Credit and Security Agreement with Rockland Trust Company, a Massachusetts trust company, replacing the Company’s previous lender.
The Agreement includes a revolving line of credit of up to $5.0 million, a machinery and equipment term loan of $2.5 million and a real estate term loan of $2.0 million.
The purpose of the financing is (a) to refinance the approximate $5.6 million of indebtedness owed to the Company’s previous lender, (b) to repay subordinated debt in the approximate amount of $450,000, plus interest, (c) to pay the expenses in respect of the financing, and (d) subject to the terms and conditions of the Agreement for the future general corporate purposes of the Company.
“We are pleased to announce our agreement with Rockland Trust. The new agreement allows for more availability with less restrictive financial covenants while reducing the Company’s blended rate of interest. Rockland Trust’s Asset Based Lending team understands Micron’s capabilities and growth potential and is very familiar with manufacturing companies of our size and in our markets,” commented Salvatore Emma, Jr. the Company’s President and CEO.
About Micron Products, Inc.
Micron Products, Inc. a wholly-owned subsidiary of Micron Solutions, Inc., is a diversified contract manufacturing organization that produces highly-engineered, innovative medical device technologies requiring precision machining and injection molding. Micron also manufactures components, devices and equipment for military, law enforcement, industrial and automotive applications. In addition, Micron is a market leader in the production and sale of silver/silver chloride coated and conductive resin sensors used as consumable component parts in the manufacture of integrated disposable electrophysiological sensors. Micron’s strategy for growth is to build a best-in-class quality organization and capitalize on its engineering design expertise and reliable, proprietary manufacturing processes to further penetrate the medical device contract manufacturing market.
