Finisar Announces New Credit Facility With Wells Fargo Foothill
SUNNYVALE, CA--(Marketwire - October 5, 2009) - Finisar Corporation (NASDAQ: FNSRD), a
technology leader in gigabit fiber optic solutions for high-speed data
networks, today announced that it had entered into an agreement with Wells
Fargo Foothill, a leading provider of senior secured financing and part of
Wells Fargo & Company (NYSE: WFC), to establish a new senior secured
revolving credit facility to finance working capital and to refinance
existing indebtedness, including the repurchase of a portion of the
Company's outstanding convertible notes due October 2010.
The new credit facility provides for a $70 million revolving line of credit
and includes a $10 million letter of credit
sub-facility. Borrowings under the credit facility will bear interest at
rates based on the prime rate and LIBOR plus variable margins, under which
applicable interest rates currently range from 5.75% to 6.25% per annum.
Borrowings will be guaranteed by Finisar's U.S. subsidiaries and secured by
substantially all of the assets of Finisar and its U.S. subsidiaries. The
credit facility matures four years following the closing date, subject to
The Company's ability to borrow under the credit facility is tied to the
balance of its qualified accounts receivable and certain assets located in
the United States. The credit facility also contains both affirmative and
negative covenants, including covenants requiring Finisar to maintain a
specified fixed charge coverage ratio.
The credit facility remains subject to various closing conditions. These
conditions are expected to be satisfied, and the closing is expected to
take place, by the end of October 2009. Once in place, the new credit
facility will replace Finisar's existing $45 million credit facility with
Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber
optic subsystems and network test systems that enable high-speed voice,
video and data communications for networking, storage, wireless, and cable
TV applications. For more than 20 years, Finisar has provided critical
optics technologies to system manufacturers to meet the increasing demands
for network bandwidth and storage. Finisar is headquartered in Sunnyvale,
California, USA with R&D, manufacturing sites, and sales offices worldwide.
For additional information, visit www.finisar.com.
ABOUT WELLS FARGO FOOTHILL
Wells Fargo Foothill is a leading provider of senior secured financing to
middle-market companies across the United States and Canada, offering
flexible, innovative credit facilities from $10 million to $1 billion and
more. It is part of Wells Fargo & Company, a diversified financial
services company with $1.3 trillion in assets, providing banking,
insurance, investments, mortgage and consumer finance through more than
10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across
North American and internationally.