Business
Optex Systems Announces New $2.25 Million Facilities Line of Credit and Provides Company Operating Update on COVID-19
RICHARDSON, TX / ACCESSWIRE / April 20, 2020 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for
About this update from Optex Systems Holdings, Inc.
[{"type":"text","content":"RICHARDSON, TX / ACCESSWIRE / April 20, 2020 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, today announced closing a new $2.25 million revolving credit facility as well as an update related to the COVID-19 impact to the company operating activities.Revolving Credit FacilityThe $2.25 million credit facility was obtained by BBVA USA, a new lender to Optex Systems Holdings, Inc. with a two-year term expiring on April 15, 2022. The loan is secured with a first priority lien on the company assets and carries interest at a floating prime rate less 25 basis points, a minimum interest rate of 2.5% and a maximum interest rate of 18% during the term of the loan. The current index rate at closing is 3.0%.Optex intends to use this revolving credit facility to support working capital for the company's continuing operations and growth needs during the next two years. The facility with BBVA USA replaces the $2.25 million facilities line of credit carried with Avidbank which expires on April 21, 2020.Karen Hawkins, CFO of Optex Systems Holdings Inc., commented, \"Although Optex continues to maintain a strong balance sheet during these uncertain times, we are delighted at the opportunity to secure our future working capital needs with a local bank allowing more flexibility to our borrowing needs at a reduced cost to the company. We look forward to our new relationship with BBVA USA and are thankful to Avidbank for their banking support over the last nine years.\"COVID-19 Operating ImpactOptex Systems Holdings, Inc. is defined as essential critical infrastructure as a defense contractor under the guidance of the federal, state and local authorities for both our Optex Systems (Richardson, TX), and Applied Optics Center (Dallas, TX) operating segments. As such, the company continues to remain open and operational with a full workforce while practicing the CDC guidelines and required Dallas County mandates which require keeping a 6' distance between employees, face coverings, and daily employee health screening. To date, we have not encountered any COVID-19 related illnesses in our workforce.We have reached out to our customers, suppliers and service providers regarding any potential impacts to operating conditions due to COVI...