AMHERST, N.Y.–(BUSINESS WIRE)–Allied Motion Technologies Inc. (Nasdaq: AMOT), a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, announced today that effective August 23, 2022, the Company completed an amendment to its amended and restated credit agreement with its lenders. The Agreement now has the following features:
- A $55 million increase in the size of the Company’s existing revolving credit facility from $225 million to $280 million;
- A higher maximum leverage ratio of 4.0x through the third quarter of 2023 after which it steps down to 3.5x. Currently, the Company has elected an allowed acquisition leverage increase which provides for a 0.5x step up to the leverage ratio to 4.5x. The allowed increase expires at the end of 2022.
- Applies the Adjusted Term Secured Overnight Financing Rate (“SOFR”) as the reference interest rate.
There were no other substantive changes to the Agreement, which matures on February 1, 2025.
Michael R. Leach, Chief Financial Officer & Senior Vice President commented “Our revised lending agreement provides us with the ability to continue to drive growth and meet working capital requirements to satisfy customer demands with elevated inventory levels during these supply constrained times. While we made six strategic acquisitions over the last year, we continue to be confident in our ability to de-lever our balance sheet after acquisitions by applying AST (“Allied Systematic Tools”) to drive continuous improvement in all areas of our business.”
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision controlled motion products and solutions used in a broad range of applications within the Vehicle, Medical, Aerospace & Defense, Electronic, and Industrial Markets. Headquartered in Amherst, NY, the Company has global operations and sells into markets across the United States, Canada, South America, Europe and Asia-Pacific.
Allied Motion is focused on controlled motion applications and is known worldwide for its expertise in electro-magnetic, mechanical, and electronic controlled motion technologies. Its products include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor-drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, Industrial safety rated I/O Modules, Universal Industrial Communications Gateways and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision solutions that utilize multiple Allied Motion technologies to “change the game” and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at www.alliedmotion.com.
