Business
Yunhong CTI Ltd. Announces New Credit Agreement
New Credit Terms Provide Increased Liquidity and Operational RunwayLAKE BARRINGTON, IL / ACCESSWIRE / October 6, 2021 / Yunhong CTI Ltd. (Nasdaq:CTIB)
About this update from Yunhong Green Cti Ltd.
[{"type":"text","content":"New Credit Terms Provide Increased Liquidity and Operational RunwayLAKE BARRINGTON, IL / ACCESSWIRE / October 6, 2021 / Yunhong CTI Ltd. (Nasdaq:CTIB) (\"Yunhong CTI\" or the \"Company\"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, announced today it has completed a refinancing of its term loan obligations and entered into a new Revolving Credit and Security Agreement (the \"Agreement\") establishing a $6 million asset-based lending (ABL) senior secured credit facility (the \"New Senior Facilities\") which matures on September 30, 2023. The New Senior Facilities replaces the Company's prior senior secured credit facility, which was to mature on December 31, 2021. The New Senior Facilities are secured by substantially all assets of the Company.The New Senior Facilities provide additional liquidity and fewer restrictive financial covenants than the Company's prior senior secured credit facility. This is expected to create operational runway as the Company moves forward with its strategic initiatives designed to improve performance and growth.\"The execution of this refinancing is an important milestone for the Company and a critical next step in our journey. This completes the foundational elements of our multi-year strategic roadmap. We have accelerated our efforts around these initiatives and securing the new financial facility allows us to head into 2022 on a sounder financial foundation to support our growth objectives,\" said Jana Schwan, Chief Operating Officer of the Yunhong CTI.\"Under the new senior credit facility, the Company will have fewer restrictive financial covenants than the previous credit agreement as well as a lower rate of interest. To successfully execute the Company's strategy, it is essential that we have a capital structure in place that provides added liquidity to invest in the growth initiatives we have planned and better positions the Company to navigate through cyclical economic environments,\" said Jennifer Connerty, Chief Financial Officer of Yunhong CTI.Additional terms of the credit agreement are summarized, and a copy of the credit agreement has been provided, in a Form 8-K filed earlier today by the Company with the United States Securities and Exchange Commission.About Yunhong CTI Ltd.Yunhong CTI is one of the leading manufa...