MOD-PAC Corp. Gets $8 Million Revolving Line Of Credit
MOD-PAC CORP. (NASDAQ: MPAC), a commercial on demand printer and manufacturer of custom paper board packaging, today announced that it has entered into a new $8 million, committed, 3-year revolving line of credit facility with KeyBank National Association, which replaces its discretionary $6.0 million facility with another bank. Up to $1.5 million of the new facility is available for letters of credit.
The new line is available for working capital needs, stock repurchases and acquisition opportunities subject to certain limitations and covenants. The line is secured by certain assets of MOD-PAC. The interest rate charged for borrowings under the terms of the facility provide for prime rate or LIBOR plus 100 basis points. Mr. Daniel G. Keane, President and CEO of MOD-PAC, commented, “We are pleased to be entering into this credit facility and to begin our banking relationship with KeyBank. With this committed and expanded line of credit we now have more financial flexibility to address growth opportunities as they arise.”
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