Asyst Receives Default Letter From KeyBank
Asyst Technologies Inc. reported to the SEC that it received a default letter from KeyBank National Association, claiming that Asyst had failed to pay interest and fees on a $76.5M loan. The action means that Asyst will likely see higher borrowing costs going forward.
Staff -- Semiconductor International, 4/15/2009
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Asyst Technologies Inc. (Fremont, Calif.) said it received a default letter on April 7 from KeyBank National Association, claiming that Asyst failed to pay interest and fees due March 31 on a $76.5M loan.
Although the bank did not initiate other actions available to it under the loan agreement, the failure to pay interest on time triggers an increase in the interest rate from 7% to 9% on the loan, Asyst reported. As a result, interest payments during the next six-month period will be ~$740,000 higher, and will likely result in higher borrowing costs for the company going forward.
“The default letter states that as of its date, KeyBank and the other lenders have not taken any action to exercise their rights and remedies under the credit agreement or any related loan document,” Asyst reported in a filing to the Securities Exchange Commission.
In early February, Asyst reported a net loss of $7.3M for its third fiscal quarter, but said it had ~$77M in cash at the end of the quarter.
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