Business News
Presstek Announces New Revolving Credit Facility and Sale of its Lasertel Subsidiary
Thursday 11. March 2010 - Presstek, Inc. (NASDAQ: PRST), a leading manufacturer and marketer of digital offset printing business solutions, announced it has entered into a new $25 million revolving credit facility with PNC Bank, N.A. and concurrently completed the sale of its subsidiary, Lasertel, Inc. to SELEX Galileo Inc. ("SELEX").
Credit Facility:
The new facility with PNC Bank is a three-year revolving credit facility which allows Presstek to borrow against certain assets of the Company up to a maximum of $25 million. Under the credit facility the Company has the option of selecting an interest rate of either the then applicable London Inter-Bank Offer Rate (minimum of 1%) plus 3.5% or the Prime Rate plus 2.5%. In connection with the closing of the PNC facility the Company repaid all outstanding amounts under its previously existing $25 million credit facility.
“We are very pleased to establish this relationship with PNC Bank. We feel their commitment to Presstek reaffirms our strategy and is testimony to the confidence they have in our ability to execute our initiatives,” said Jeff Jacobson, Pressteks Chairman, President and Chief Executive Officer. “With the new credit facility in place, we believe that we have sufficient capital to meet our current financing requirements and fuel our future growth.”
Lasertel Sale:
Presstek completed the sale of Lasertel to SELEX on March 5, 2010 for approximately $10 million, comprised of $8 million in cash and $2 million of laser diode inventory for Pressteks future product requirements. The Company expects to recognize a gain on the sale of Lasertel within discontinued operations of approximately $0.5 million, subject to final adjustments. The net cash proceeds have been used to pay down debt. As part of the transaction, Presstek has entered into a two-year laser diode supply agreement. SELEX also will assume the current lease on the Lasertel property in Tucson, AZ.
“The sale to SELEX places Lasertel into a large organization whose core business is closely aligned with Lasertels mission,” commented Jacobson. “At the same time, it allows Presstek to focus on our core business. While selling Lasertel has been a key objective during the past year, we needed to ensure that we received an appropriate value for Lasertel. We are pleased that we are able to accomplish that objective with this sale.”
“Today we have announced the completion of two critical milestones in driving Presstek forward. The closings of the Lasertel sale and the new credit facility represent major steps toward clearing the way for Presstek to fulfill its strategic goals,” added Jacobson. “These types of activities can take an enormous amount of time and effort to complete. We look forward to the opportunity to increase, even more, our focus on driving our strategy and delivering our message to the market.”