IRVINE, Calif., Nov. 16, 2007 (PRIME NEWSWIRE) -- Meade Instruments Corp. (Nasdaq:MEAD), a leading designer and manufacturer of optical products, including telescopes, riflescopes, binoculars and microscopes, today announced that it has signed the Twelfth Amendment to its Amended and Restated Credit Agreement with its primary lender, Bank of America, N.A.
The Twelfth Amendment makes the following key changes to the credit agreement: (1) reduces the facility to $25 million; (2) adjusts the pricing grid based on the Company's financial performance; (3) establishes a $0.5 million reserve against the borrowing base with provisions for a reduction in the reserve for meeting future covenants; (4) sets minimum EBITDA, tangible net worth and capital expenditure requirements measured on a monthly basis for the next twelve months and a rolling four quarter basis thereafter and sets minimum fixed charge coverage ratio covenants measured on a rolling four quarter basis beginning in February 2009; and (5) allows for inter-company debt between the Company and its European subsidiary subject to certain limits and conditions. Under the Twelfth Amendment, Bank of America, N.A. also waived the Company's non-compliance with the minimum EBITDA covenant under the credit agreement as of August 31, 2007. As a result, the Company is now in compliance with the financial covenants of the credit agreement.
Steve Muellner, President and Chief Executive Officer of Meade, commented, "We are pleased that our lender continues to be a supportive partner to us as we continue making progress toward the turnaround of the Company."
ABOUT MEADE INSTRUMENTS
Meade Instruments is a leading designer and manufacturer of optical products including telescopes and accessories for the beginning to serious amateur astronomer. Meade offers a complete line of binoculars that address the needs of everyone from the casual observer to the serious sporting or birding observer. Meade also offers a complete line of riflescopes under the Simmons(r), Weaver(r) and Redfield(r) brand names. The Company distributes its products worldwide through a network of specialty retailers, mass merchandisers and domestic and foreign distributors. Additional information on Meade is available at www.meade.com.
"Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain comments and forward-looking statements based on current plans, expectations, events, and financial and industry trends that may affect the Company's future operating results and financial position. Such statements involve risks and uncertainties which cannot be predicted or quantified and which may cause future activities and results of operations to differ materially from those discussed above. Such risks and uncertainties include, without limitation: the sufficiency of the Twelfth Amendment to meet the Company's liquidity needs; whether the Company will be able to remain in compliance with future financial covenants; the Company's ability to execute on its strategic initiatives and turnaround plans and the potential need for further restructuring activities; as well as the other risks and uncertainties previously set forth in the Company's filings with the Securities and Exchange Commission. For additional information, please refer to the Company's filings with the Securities and Exchange Commission.