SMTC signs amended loan agreements

SMTC, an electronics manufacturing services provider, has signed amended loan agreements with Wells Fargo Capital Finance, a provider of secured financing, and Export Development Canada (EDC), a trade finance and risk management services company, to refinance the corporation’s short- and long-term debt.

Under the arrangements, the term and principal repayment schedule has been extended to 2013 and virtually all principal payments eliminated in 2010.

Interest rates on the revolving line of credit are now at prime rate plus one per cent, currently representing an aggregate rate of 3.25 per cent in Canada and 4.25 per cent in the US.

Interest rates on the term loan will vary depending upon financial performance in the range of Libor plus 2.5 to 3.5 per cent – currently 2.8 to 3.8 per cent in aggregate.