MT. LAUREL, N.J. - inTEST Corporation (NYSE American: INTT), a provider of test and process technology solutions, has revised its loan agreement with M&T Bank, extending the maturity of its term loan and revolving credit facility to May 2, 2031. The announcement made today also detailed the extension of the drawdown period for the term loan until May 2, 2026.
The amended facility allows inTEST to access approximately $30 million remaining from its $50.5 million term loan and the entire $10 million from the revolving credit facility. The interest rates for these borrowings are tied to the Secured Overnight Financing Rate (SOFR) or a bank-defined base rate, with an added margin of at least 2.1%, influenced by the company's leverage. The current annual interest rate is around 7.4%, based on the existing SOFR and the company's leverage.
With this financial restructuring, inTEST aims to bolster its strategic initiatives, which include organic growth and potential acquisitions. The credit facilities are secured by a majority of the company's assets, providing a safeguard for the lender.
inTEST operates globally, supplying technology solutions for manufacturing and testing across various industries such as automotive/EV, defense/aerospace, industrial, life sciences, security, and semiconductors. The company is known for addressing complex thermal, mechanical, and electronic challenges and has a history of strong cash flow and profitability.
This financial maneuver is based on a press release statement from inTEST Corporation.
InvestingPro Insights
In light of inTEST Corporation's (NYSE American: INTT) recent financial restructuring, a look at the company's latest metrics and InvestingPro Tips can provide investors with a deeper understanding of its current position. Notably, inTEST holds a P/E Ratio (Adjusted) of 11.03, suggesting that the stock is trading at a reasonable valuation relative to its earnings. The PEG Ratio stands at a strikingly low 0.12, indicating potential undervaluation when considering near-term earnings growth prospects.
Furthermore, the company's Price / Book value is 1.38, which can be appealing to investors seeking assets that are priced close to their book value. With a Gross Profit Margin of 46.21%, inTEST demonstrates a strong ability to retain earnings after the cost of goods sold, which is a positive sign for profitability. Despite recent stock price volatility, with a 1 Month Price Total Return of -19.78%, the company's liquid assets exceeding short-term obligations and the fact that it holds more cash than debt on its balance sheet could provide a cushion against market fluctuations.
InvestingPro Tips for inTEST Corporation suggest that the company's valuation implies a strong free cash flow yield and that analysts predict it will be profitable this year. These insights, along with the knowledge that inTEST does not pay a dividend, allowing for potential reinvestment in growth, could be critical for investors considering the company's stock. For those interested in a comprehensive analysis, InvestingPro offers additional tips on inTEST Corporation, which can be accessed at https://www.investing.com/pro/INTT. In total, there are 9 InvestingPro Tips available that can provide further depth to the company's financial health and stock performance.
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