Maturity Extended until January 31, 2011
Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, announced today that it has amended its Revolving Credit
Agreement (the "credit agreement"). The amended agreement, among other
items, has modified the maturity of the credit agreement to January 31,
2011.
The amended agreement also includes, modified financial covenants and
increased borrowing limits from $120 to $130 million as of November 1,
2009 and from $100 to $110 million as of January 31, 2010 through
maturity. Additionally, the Company’s overall availability limit has
been reduced by $5 million to $130 million. As part of the amended
agreement the Company has issued warrants that could be exercised up to
5% of the Company’s outstanding common stock. The agreement, however,
does stipulate potential clawback provisions which may limit the maximum
warrants to 2% of the Company’s outstanding common stock.
"Amending our credit agreement and extending the maturity date allows
Photronics to continue to move forward with full focus on increasing
revenue performance and driving cost reduction activities to deliver
improved profitability,” stated Constantine S. Macricostas, Photronics'
chairman and chief executive officer. “Achieving this agreement despite
the difficult market and financial environment is a testament to
Photronics’ ability to persevere in adverse conditions,” concluded Mr.
Macricostas.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks
are high precision quartz plates that contain microscopic images of
electronic circuits. A key element in the manufacture of semiconductors
and flat panel displays, photomasks are used to transfer circuit
patterns onto semiconductor wafers and flat panel substrates during the
fabrication of integrated circuits, a variety of flat panel displays
and, to a lesser extent, other types of electrical and optical
components. They are produced in accordance with product designs
provided by customers at strategically located manufacturing facilities
in Asia, Europe, and North America. Additional information on the
Company can be accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for forward-looking statements made by or on behalf of
Photronics, Inc. and its subsidiaries (the Company). The forward-looking
statements contained in this press release and other parts of
Photronics’ web site involve risks and uncertainties that may affect the
Company’s operations, markets, products, services, prices, and other
factors as discussed in filings with the U. S. Securities and Exchange
Commission (SEC). These risks and uncertainties include, but are not
limited to, economic, competitive, legal, governmental, and
technological factors. Accordingly, there is no assurance that the
Company’s expectations will be realized. The Company assumes no
obligation to provide revisions to any forward-looking statements.
06-2009
Photronics, Inc.
Scott J. Gish, 203-775-9000
Vice President
Corporate
Communications
sgish@photronics.com
