FAIRFIELD, CONN., May 24, 2018 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American:ACU) today announced renewal of its loan facility with HSBC Bank, N.A. at a reduced interest rate.
The agreement provides for borrowings up to $50 million at an interest rate of LIBOR plus 1.75%, and expires on May 24, 2023. The facility is intended to provide liquidity for growth, share repurchases, dividends, acquisitions, and other business activities.
As of March 31, 2018, the Company had outstanding borrowings of $41.1 million under the revolving loan agreement with HSBC. The prior interest rate was LIBOR plus 2.0%.
Walter C. Johnsen, Chairman and CEO said, “We are very pleased to have renewed our loan with HSBC and particularly appreciate the reduction of our base borrowing rate. The Company continues to see many growth opportunities, and this facility better positions us to execute on those opportunities. We thank HSBC for their support and commitment to our business.”
ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, 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.
Paul G. Driscoll
Acme United Corporation
55 Walls Drive
Fairfield, CT 06824
Phone: (203) 254-6060
FAX: (203) 254-6521