IRVING, Texas, March 19 /PRNewswire-FirstCall/ -- EF Johnson Technologies, Inc. announced today that it has finalized an amendment to its revolving line of credit and term loan agreement with Bank of America, N.A.
"We are pleased with the banks' support of our strategic actions and their confidence in our ability to improve our financial position," said Michael Jalbert, president and chief executive officer of EF Johnson Technologies, Inc.
For the quarter ended December 31, 2008, the Company was not in compliance with the financial covenant relating to the maintenance of a minimum EBITDA. As a result, the Company and Bank of America executed an amendment which provides a one-time waiver for compliance with that financial covenant. In exchange for the waiver, the Company agreed to (i) reduce the maximum principal amount of the revolving credit line from $15.0 million to $10.0 million, (ii) provide cash collateral in the amount of $3.0 million as additional security for the term loan governed by the loan agreement, (iii) revise certain financial covenants, and (iv) adjust the interest rate on both the revolving note and term note issued under the loan agreement. The amendment is discussed in more detail in the Company's Form 8-K, filed with the Securities and Exchange Commission on this date.
About EF Johnson Technologies, Inc.
Headquartered in Irving, Texas, EF Johnson Technologies, Inc. focuses on innovating, developing and marketing the highest quality secure communications solutions to organizations whose mission is to protect and save lives. The Company's customers include first responders in public safety and public service, the federal government, and industrial organizations. The Company's products are marketed under the EFJohnson, 3e Technologies International, and Transcrypt International names. For more information, visit http://www.efjohnsontechnologies.com/.
Safe Harbor
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements due to a number of risk factors including, but not limited to, the level of demand for the company's products and services, reliance on contract manufacturers, the timely procurement of necessary manufacturing components, software feature development and the implementation of application software, successful integration of the system components, dependence on continued funding of governmental agency programs, general economic and business conditions, and other risks detailed in the company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended December 31, 2007 and in the company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release and the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
