Broadwind Energy Inc. says it has closed on a $20 million credit facility with AloStar Business Credit of Birmingham, Ala.
Under the terms of the credit arrangement, Broadwind will have access to up to $20 million based on a borrowing base secured by eligible trade receivables and inventories.
The credit facility has a three-year term, with an interest rate of 30-day LIBOR plus 4.25%, with a 1.0% LIBOR floor. The terms of the credit facility include financial and other covenants typical for asset-based loans of this kind. The loan is also secured by certain of the company's fixed and other assets.
Broadwind used the proceeds of the new credit facility to refinance two existing credit facilities and certain other debt, as well as to pay fees and expenses related to the new credit facility.
Roswell Capital Securities LLC served as agent on this transaction.
Earlier this month, Broadwind reported a $4.2 million loss for the second quarter and said it is diversifying its business away from wind energy. Yesterday, the company made a reverse split of its common stock at a ratio of one post-split share for every 10 pre-split shares in order to maintain its NASDAQ listing.