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Hardinge gets 10 megabuck loan.

Hardinge Inc., Elmira, NY, announced on March 16, that it entered into a financing arrangement with Manufacturers and Traders Trust Company--M&T. Under the agreement, M&T provided Hardinge with a $10 million term loan which is secured by the company's U. S. assets, as well as two thirds of the company's investment in its foreign subsidiaries.

Proceeds from the term loan repay approximately $8 million of company indebtedness under a secured credit facility entered into in June 2008. As announced in Hardinge's year-end earnings release, it had violated the fixed charge covenant under that agreement. The June 2008 credit facility has been paid in full and the company has taken a non-cash charge of approximately $1 million related to deferred financing costs in connection with its termination.

Contemporaneous with the execution of the term loan with M&T, the company entered into a commitment letter with M&T for a three-year, $25 million, revolving credit facility, which, when consummated, will replace the $10 million term loan with M&T Bank.

During March 2009, Hardinge reduced its North American and European staffing by 85 employees, trimming annual compensation related expenses by approximately $4.5 million. These recent staff reductions reflect the industry's continued weak order and sales activity and bring the company's total global workforce reduction to approximately 300 positions since early-2008.

The staff reductions were across all organizational functions and were achieved through a voluntary early retirement program, along with voluntary and involuntary lay-offs. The company continues to operate its primary factories at reduced work hour levels.
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Title Annotation:INDUSTRY NEWS
Publication:Modern Applications News
Date:May 1, 2009
Words:258
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