Attached files
| file | filename |
|---|---|
| 8-K - NU HORIZONS ELECTRONICS CORP | v189372_8k.htm |
| EX-10.1 - NU HORIZONS ELECTRONICS CORP | v189372_ex10-1.htm |
70 Maxess
Road ▪
Melville, NY 11747
631-396-5000
▪ Fax:
631-396-3016
FOR IMMEDIATE
RELEASE
NU
HORIZONS ELECTRONICS CORP. COMPLETES
$80
MILLION GLOBAL FINANCING AGREEMENT DUE 2014
MELVILLE, NY, June 28, 2010 —
Nu Horizons Electronics Corp. (NASDAQ:NUHC), a leading global distributor of
advanced technology semiconductor, display, illumination, power, system and
telecommunication solutions, today announced that the Company has entered into a
new global asset-backed loan facility ("ABL") with Wells Fargo Capital Finance,
part of Wells Fargo & Company (NYSE:WFC), as a lender and as administrative
agent, and two other banks. The ABL is expected to fund the Company’s
borrowing requirements in the United States ("U.S."), the United Kingdom
("U.K.") and Asia for a four-year term. The facility provides for
maximum borrowings of $80,000,000 with an option to increase the facility to a
maximum borrowing of $110,000,000 under certain circumstances. The
ABL facility provides for borrowings at variable interest rates utilizing an
asset-based formula predicated on a percent of qualifying accounts receivable
and inventory at any given month end and taking into account the excess credit
availability under the ABL. The current interest rate under the ABL
is 4.5%. Nu Horizons used approximately $37.5 million of the ABL
proceeds to pay off and terminate its pre-existing U.S. and U.K. credit
facilities and pay transaction fees.
Kurt
Freudenberg, Executive Vice President and Chief Financial Officer, stated, "As
we expand our international presence, we believe this ABL facility will provide
the Company with global financing flexibility with less financial covenants and
the necessary financing to meet our currently anticipated working capital
requirements for our current growth initiatives. In addition, under
certain circumstances we can exercise an accordion feature to increase the
facility by $30,000,000 to a total of $110,000,000."
About
Nu Horizons Electronics Corp.
Nu
Horizons Electronics Corp. is a leading global distributor of advanced
technology semiconductor, display, illumination, power, system and
telecommunication solutions to a wide variety of commercial original equipment
manufacturers (OEMs) and electronic manufacturing services providers (EMS). With
sales facilities in 54 locations across North America, Europe and Asia and
regional logistics centers throughout the globe, Nu Horizons partners with a
limited number of best-in-class suppliers to provide in-depth product
development, custom logistics and life-cycle support to its customers.
Information on Nu Horizons and its services is available at http://www.nuhorizons.com.
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Nu
Horizons Electronics Corp. Completes $80 Million
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Global
Financing Agreement due 2014
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Page
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Cautionary Statement
Regarding Forward-Looking Statements
Except
for historical information contained herein, the matters set forth in this news
release are forward-looking statements. When used in this press release, words
such as "anticipate," "believe," "estimate," "expect," "intend" and similar
expressions, as they relate to Nu Horizons or its management, identify
forward-looking statements. Such forward-looking statements are based on the
current beliefs of Nu Horizons' management, as well as assumptions made by and
information currently available to its management. Forward-looking statements
involve certain risks and uncertainties that could cause actual results to
differ from those in the forward looking-statements. Potential risks and
uncertainties include such factors as the level of business and consumer
spending for electronic products, the amount of sales of the Company's products,
the competitive environment within the electronics industry, the ability of the
Company to expand its operations, the level of costs incurred in connection with
the Company's expansion efforts and the financial strength of the Company's
customers and suppliers. Investors are also directed to
consider other risks and uncertainties discussed in documents filed by the
Company with the Securities and Exchange Commission. Such statements reflect our
current view with respect to the future and are subject to these and other
risks, uncertainties and assumptions relating to Nu Horizons' financial
condition, results of operations, growth strategy and liquidity. The Company
does not undertake any obligation to update its forward-looking
statements.
Company
Contact:
Kurt
Freudenberg
Executive
Vice President and Chief Financial Officer
Nu
Horizons Electronics Corp.
kurt.freudenberg@nuhorizons.com
631-396-5000
Investor
Relations:
Darrow
Associates, Inc.
Jordan M.
Darrow
631-367-1866
jdarrow@darrowir.com