Research Reports

Key takeaways

$10 million revolving credit facility with JPMorgan Chase, maturing June 2029.

Up to $5 million available for letters of credit; facility can be increased by $10 million.

Interest at Prime Rate + 2.50% or SOFR + 2.50%; commitment fee of 0.35% on undrawn portion.

Covenants: total leverage ratio ≤ 2.25x and fixed charge coverage ratio ≥ 1.25x, tested quarterly.

Facility secured by substantially all assets of the company and subsidiary FEI-Zyfer.

Proceeds used for general corporate purposes and working capital.

Full analysis

The company entered into a new $10 million secured revolving credit facility, replacing or supplementing existing financing. The terms are standard for a mid-sized firm, with a three-year maturity and customary financial covenants (maximum total leverage ratio of 2.25x and minimum fixed charge coverage ratio of 1.25x), tested quarterly. The facility is secured by substantially all assets and guaranteed by the subsidiary FEI-Zyfer. The lender, JPMorgan Chase, also maintains existing banking relationships with the company. The commitment fee of 0.35% on the undrawn portion is typical. The facility provides committed liquidity for working capital and general corporate purposes, enhancing financial flexibility.

FEIM · Frequency Electronics, Inc.

Summary

Key takeaways

Full analysis