FAIRFIELD, Conn.--(BUSINESS WIRE)--Acme United Corporation (NYSE MKT:ACU) today announced a new $50 million loan facility with HSBC Bank, N.A.
The agreement provides for borrowings at LIBOR plus 2.00%, and expires on May 5, 2019. The facility is intended to provide liquidity for growth, share repurchases, dividends, acquisitions, and other related business activities. It replaces a prior $40 million facility at HSBC. As of March 31, 2016, the Company had outstanding borrowings of $35.7 million under the revolving loan agreement with HSBC.
Walter C. Johnsen, Chairman and CEO said, “We are very pleased to have increased our borrowing capacity to help finance expansion of our business. The Company continues to see many growth opportunities and we are excited about our prospects. We thank HSBC for their help and support.”
ACME UNITED CORPORATION is an innovative supplier of cutting devices, measuring instruments, and safety products for school, home, office, hardware, sporting goods and industrial use. Its leading brands include Westcott®, Clauss®, Camillus®, CUDA®, PhysiciansCare ®,Pac-Kit® First Aid Only® and DMT® . For more information, visit www.acmeunited.com
Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers (iii) changes in client needs and consumer spending habits; (iv) the impact of competition and technological changes on the company (v) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vi) currency fluctuations; and (vii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.