ATS Automation Signs New Credit Agreement
CAMBRIDGE, ON, June 17 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has signed a new primary credit agreement with The Bank of Nova Scotia.
The new 17-month agreement provides the Company with credit facilities of up to $85 million comprised of an operating credit facility of $40 million, which will increase by $5 million monthly increments up to $65 million, subject to certain conditions, as well as a letter of credit facility of up to $20 million.
"Signing this credit agreement is one of several steps we are taking to improve financial flexibility beyond the strength of our balance sheet," said Anthony Caputo, CEO. "Other initiatives include plans to increase profitability, monetize non-core assets and improve working capital. There is more to do, but we are pleased with progress to date."
ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in industries such as healthcare, computer/electronics, automotive and consumer products. It also leverages its many years of repetitive manufacturing experience and skills to fulfill the specialized repetitive equipment manufacturing requirements of customers. Through its solar business, ATS participates in the growing solar energy industry and through its precision components business it produces, in high volume, precision components and subassemblies. ATS employs approximately 3,500 people at 24 manufacturing facilities in Canada, the United States, Europe, southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.
For further information:
Anthony Caputo, Chief Executive Officer
Maria Perrella, Chief Financial Officer
Carl Galloway, Vice President and Treasurer