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| MERX > SEC Filings for MERX > Form 8-K on 30-Jun-2009 | All Recent SEC Filings |
30-Jun-2009
Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation
On June 29, 2009, Merix Printed Circuits Technology Limited, a Chinese subsidiary of Merix Corporation ("Merix" or "the Company") announced that it received a lending commitment for a 50 million renminbi credit facility (approximately US$7.3 million) from Industrial and Commercial Bank of China, Limited ("ICBC"). The borrowings under the credit facility are secured by a mortgage lien on the building and land lease at the Company's Huiyang manufacturing facility. Initial availability under the credit facility is 36 million renminbi (approximately US$5.3 million), with the balance of borrowings expected to become available within 90 days upon perfection of the security interest in the building.
On June 26, 2009, the Company entered into a loan agreement for an initial loan advance under the credit facility of US$1.5 million which matures one year from the date of drawdown. This advance bears interest based on the three-month LIBOR rate plus a margin of 1.5%. The drawdown of this initial advance is expected to occur within 30 days and will be used to repay existing borrowings under the Company's revolving credit facility with Bank of America, N.A.
The Company will enter into separate loan agreements for additional borrowings under this credit facility, which will mature one year from the date of those incremental advances. Merix expects to use the advances for working capital or general corporate purposes.
The information in Item 1.01 with respect to the Loan Agreement is hereby incorporated by reference.
(d) Exhibits
10.1 Foreign Exchange Loan Contract, dated June 26, 2009, by and between Merix Printed Circuits Technology Limited and Industrial and Commercial Bank of China, Limited.
10.2 Maximum Amount Mortgage Agreement, dated June 26, 2009, by and between Merix Printed Circuits Technology Limited and Industrial and Commercial Bank of China, Limited.
99.1 Press release dated June 29, 2009
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