HAMPTON, Va., April 29, 2009 (GLOBE NEWSWIRE) -- Measurement Specialties, Inc. (Nasdaq:MEAS) (the "Company"), a designer and manufacturer of sensors and sensor-based systems, announced today that it has completed an amendment to its senior credit facility, reducing the revolver commitment from $121 million to $90 million while revising pricing and improving certain quarterly financial covenants.
As a result of the global recession and associated decline in sales and earnings, the Company was forecasting a default under several of its financial covenants in fiscal 2010. Accordingly, the Company has entered into an amendment with its senior lenders, effective April 27, 2009. The amendment will provide the Company with additional flexibility under certain quarterly financial covenants including the minimum EBITDA covenant, the total leverage ratio, the fixed charge ratio, and the maximum capital expenditure covenant, during its fiscal year ending March 31, 2010. In addition to fees paid in connection with the amendment, the Company agreed to increase the interest rate charged on the revolver and term loan balances, which is determined based on a calculation of its senior leverage. During fiscal 2010, the Company is precluded from acquiring additional businesses without the approval of the bank group.
Mark Thomson, Company CFO, commented, "As a result of the global economic crisis and the uncertainty of when and how quickly the global economy will recover, we felt it prudent to work proactively with our bank group to amend the credit facility to obtain additional flexibility with respect to our financial covenants."
About Measurement Specialties
Measurement Specialties, Inc. (MEAS) designs and manufactures sensors and sensor-based systems to measure precise ranges of physical characteristics such as pressure, temperature, position, force, vibration, humidity and photo optics. MEAS uses multiple advanced technologies -- piezo-resistive silicon sensors, application-specific integrated circuits, micro-electromechanical systems ("MEMS"), piezoelectric polymers, foil strain gauges, force balance systems, fluid capacitive devices, linear and rotational variable differential transformers, electromagnetic displacement sensors, hygroscopic capacitive sensors, ultrasonic sensors, optical sensors, negative thermal coefficient ("NTC") ceramic sensors and mechanical resonators -- to engineer sensors that operate precisely and cost effectively.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases "should", "intends", " is subject to", "expects", "will", "continue", "anticipate", "estimated", "projected", "may", "we believe", "future prospects", or similar expressions. These forward-looking statements involve a number of risks and uncertainties. Factors that might cause actual results to differ include, but are not limited to, success of any reorganization or cost control efforts; compliance with debt covenants; ability to raise additional funds; conditions in the general economy and in the markets served by the Company, including changes in the demand for passenger and non-passenger vehicles incorporating our products; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers' operations affecting availability of component materials at reasonable prices; timely development and market acceptance, and warranty performance of new products; success in integrating prior or future acquisitions; changes in product mix, costs and yields, fluctuations in foreign currency exchange rates; uncertainties related to doing business in Hong Kong and China; and the risk factors listed from time to time in the Company's SEC reports. The Company from time-to-time considers acquiring or disposing of business or product lines. Forward-looking statements do not include the impact of acquisitions or dispositions of business or assets, which could affect results in the near term. Actual results may differ materially. The Company assumes no obligation to update the information in this release.