MOD-PAC has signed an agreement with Manufacturers and Traders Trust Company for a new $3m, three-year revolving credit facility.
The new facility arranged by MOD-PAC replaces the $5m line of credit of the company that expired in March 2010.
MOD-PAC chief operating officer and chief financial officer David Lupp noted, “This agreement confirms our strong cash generation, solid balance sheet, and improved liquidity. The new facility provides MOD-PAC with the financial flexibility to support our growth strategy of expanding the Company’s core product lines, and allows us to continue to focus on achieving operating efficiencies.”
The $3m, three-year revolving credit facility closed on June 9, 2010. The interest rate on the new credit facility is based on a LIBOR rate, plus 2.75%, with an interest rate floor of 3.35%.
The company may allocate up to $1.5m of its availability under the credit agreement for the issuance of letters of credit.
MOD-PAC is a manufacturer of custom paper board packaging and provider of personalised print products.
Within folding cartons, MOD-PAC provides custom folding cartons for branded and private label consumer products in the food and food service, healthcare, medical and automotive industries.