DDi Corp., Anaheim, Calif., today announced that its principal operating subsidiary, Dynamic Details Inc., has successfully reached an agreement to amend its senior credit facility, effective June 28.
The amendment, which covers $73 million in outstanding term loans and a $50 million revolving credit facility, either waives or resets the financial convenants through December 31, 2003 and establishes two new covenants, one related to liquidity and the other related to minimum revenues.
The amendment did not change the interest rate spread nor the repayment schedule for the outstanding term loans, which mature between July 2004 and April 2005, but did reduce the revolving credit facility to $50 million from $75 million.
At May 31, DDi Corp. had $54 million in unrestricted cash and cash equivalents, and $12.5 million in restricted cash for interest payments relating to its $100 million, 6.25% convertible subordinated note offering, which closed on April 2, 2002.
In addition, the EMS company had no amounts outstanding under its $50 million revolving credit facility and had $1.2 million reserved against the facility for letters of credit, it said.
"We are pleased with the outcome of the discussions that weinitiated with JPMorgan Chase Bank and our bank syndicate," the company said in a released statement. "Their willingness to provide us with flexibility during a protracted, soft end market illustrates the strength of our ongoing relationship with the loan syndicate and its support for DDi Corp. The amendment to the credit facility should provide us with the financial flexibility to sustain our current operations in this challenging economic environment."
DDi said the June quarter is in-line with prior guidance of net sales of $60 million to $65 million and a net loss of 10 cents per share to 15 cents per share, excluding any non-recurring charges.