Hardinge gets 10 megabuck loan.
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|
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