Lantronix Announces Increased Line Of Credit From $4M To $6M, Term Loan Agreement Provides $6M For Acquisition Funding

Term loan agreement provides $6 million of funding for acquisition Company’s current line of credit increased from $4 million to $6 million No change to current EPS growth guidance IRVINE, Calif., Nov. 12,

Benzinga · 11/12/2019 21:52
  • Term loan agreement provides $6 million of funding for acquisition
  • Company’s current line of credit increased from $4 million to $6 million
  • No change to current EPS growth guidance

IRVINE, Calif., Nov. 12, 2019 (GLOBE NEWSWIRE) -- Lantronix, Inc. (“Lantronix” or “Company”) (NASDAQ:LTRX), a global provider of secure data access and management solutions for the industrial Internet of Things (IoT), today reported that it has entered into a Second Amended and Restated Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”) to provide Lantronix with a Term Loan, in the original principal amount of $6 million, to be used solely to fund the previously announced acquisition of Intrinsyc Technologies Corporation (TSX:ITC). The Term Loan is payable in forty-eight equal monthly installments and provides for an interest rate per annum equal to the greater of (i) the prime rate plus 1.00% or (ii) 6.00%. The Loan Agreement also increased Lantronix’s existing line of credit from $4 million to $6 million, providing the company with access to additional working capital.  

“We are pleased to announce this funding for our acquisition of Intrinsyc,” stated Paul Pickle, President and CEO of Lantronix. “Strengthening our liquidity and access to capital is key to enabling our recently announced growth strategy and positions us to deliver significant long-term shareholder value.”

Lantronix will use the proceeds of the Term Loan to close its acquisition of Intrinsyc, currently targeted for January of 2020.  Other material terms related to the Term Loan and the line of credit can be found in the Company’s Current Report on Form 8-K which will be filed with the Securities and Exchange Commission.