Irving, TX – March 19, 2009 – EF Johnson Technologies, Inc. (NASDAQ: EFJI) 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.