Dynasil Completes Refinance of Its Debt with
July 13, 2010 09:18 AM Eastern Daylight Time
WEST BERLIN, N.J.--(EON: Enhanced Online News)--Dynasil Corporation of America (OTCBB: DYSL) today
announced it completed the refinancing of its debt with Sovereign/Santander Bank with considerable interest and
cash flow savings while increasing Dynasil’s lines of credit from $1.2 million to $8 million.
David Swoyer, Regional Executive, Corporate Banking of Sovereign/Santander Bank said, “We are extremely
pleased to partner with Dynasil, a company with a great track record and even greater potential.”
The Loan Agreement provides for a five-year $9 million term loan at an interest rate of 5.58%, a $3 million working
capital line of credit at an interest rate of Prime or one month LIBOR plus 2.75% and a $5 million acquisition line of
credit at an interest rate of one month LIBOR plus 3.5%. The $9 million term loan replaces all outstanding debt and
lowers Dynasil’s weighted average cost of debt from 6.82% to 5.58% (a decrease of 18%). Including the
repayment of a $2 million note coming due in October 2010, there is an expected $3 million overall reduction in loan
payments over the next twelve months, which frees up cash flow to fund growth activities and provides liquidity for
the Company’s working capital requirements, long-term financing needs and acquisition financing.
“We are pleased to have completed this refinancing with Sovereign/Santander Bank, which significantly increases our
lines of credit at a considerable interest rate and cash flow savings,” said Craig T. Dunham, President and Chief
Executive Officer of Dynasil. “This strengthens our financial position and fuels our company’s growth strategy both
organically and through acquisitions.” Additional details of the new Sovereign/Santander Agreement will be outlined
in the company's 8-K filing with the SEC.
About Dynasil: Dynasil Corporation of America (OTCBB: DYSL), is a provider of technology, products,