Printer Friendly

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.
COPYRIGHT 2009 Nelson Publishing
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:INDUSTRY NEWS
Publication:Modern Applications News
Date:May 1, 2009
Previous Article:Haas Scholarship fund kicks in $200k for education.
Next Article:NASA picks "retro" heat shield material.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters