Contact Information: AT THE COMPANY: Rick Vitelle Chief Financial Officer (805) 987-9000 AT FINANCIAL RELATIONS BOARD: Lasse Glassen General Information (213) 486-6546
CalAmp Completes Refinancing of Bank Debt
| Source: CalAmp Corp.
OXNARD, CA--(Marketwire - December 23, 2009) - CalAmp Corp. (NASDAQ : CAMP ), a leading provider
of wireless products, services and solutions, announced today that it has
paid in full the $13.95 million outstanding balance of its credit facility
with Bank of Montreal and two other banks, which had a maturity date of
December 31, 2009. The funds for this payoff were provided by a drawdown
of $7.77 million under a new revolving credit facility with Square 1 Bank
of Durham, North Carolina, supplemented by aggregate proceeds of $6.18
million from the private placement of common stock and subordinated debt.
The Square 1 Bank credit facility has a two-year term and provides for
borrowings up to the lesser of $12 million or 85% of the Company's eligible
accounts receivable. Outstanding borrowings bear interest at Square 1's
prime rate plus 2.0%, subject to a minimum effective interest rate of 6%.
The Company also raised junior capital from a group of investors comprised
of $4.25 million from the sale of approximately 1,932,000 shares of common
stock and $1.93 million in subordinated debt. The subordinated notes bear
interest at 12% per annum and have a maturity date of December 22, 2012.
The Company also issued a total of 192,500 common stock purchase warrants
to the subordinated note investors at an exercise price of $4.02 per share,
which represents a 20% premium to the average closing price of the
Company's common stock for the 20 consecutive trading days prior to the
closing of the refinancing. The Company agreed to file a registration
statement with the Securities and Exchange Commission to register the
privately issued shares and the shares of common stock underlying the
warrants.
Rick Gold, President and CEO of CalAmp, commented, "This refinancing is an
important milestone for CalAmp. It provides working capital for growth and
eliminates the uncertainty associated with the maturing bank credit
agreement. We want to thank our past lenders for their patience and
support and now look forward to working with Square 1."
"We are very pleased to extend this credit facility to CalAmp," said
Richard Suhl, Senior Vice President of Square 1 Bank. "We look forward to
a long and mutually beneficial relationship with the Company."
B. Riley & Co., LLC served as CalAmp's financial advisor in connection with
this refinancing.
About CalAmp Corp.
CalAmp provides wireless communications solutions that enable
anytime/anywhere access to critical data and content. The Company serves
customers in the public safety, industrial monitoring and controls, mobile
resource management, and direct broadcast satellite markets. The Company's
products are marketed under the CalAmp, Dataradio, SmartLink, Aercept,
LandCell and Omega trade names. For more information, please visit
www.calamp.com.