Plastics machinery maker Milacron Inc. has signed a new five-year revolving line of credit with General Electric Capital Corp., providing as much as $105 million in borrowing power.
Milacron officials said the asset-based loan, announced Dec. 20, will help the company's long-term plan.
``Achieving access to greater liquidity, at more attractive terms, gives us confidence'' that Milacron will be able to remain focused on initiatives such as product development, emerging markets and worldwide customer support, said Ross Anderson, senior vice president and chief financial officer.
The loan matures in December 2011. It replaces Milacron's $75 million asset-based loan from JP Morgan Chase, which was due to expire in 2008. Based on current asset levels at the Cincinnati-based company, the new asset-based loan increases Milacron's total borrowing capacity by about $17 million.
Milacron officials said there are no performance covenants on the loan, as long as the company complies with minimum availability thresholds.