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Market: OTCBB
Sector: Semiconductors
EPIC: WYNX
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Waytronx
www.waytronx.com

Waytronx, Inc. has pioneered and is commercializing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others.

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Waytronx restructures and cuts size of term note related to acquisition of CUI

9th Sep 2010, 6:53 pm
Waytronx restructures and cuts size of term note related to acquisition of CUI

Technology development specialist and electromechanical components manufacturer Waytronx, Inc (OTC:WYNX) confirmed this morning that it had reduced its debt pile by a further US$4 million and renegotiated the structure of term note connected to its acquisition of Japan`s CUI.


US listed Waytronx has two key business segments currently: its Japanese wholly owned subsidiary CUI, and the partially owned subsidiary Comex Electronics, which provide electromechanical components and industrial controls to the OEM (Original Equipment Manufacturers) market.

Waytronx’s second core focus is a range of patented technologies which offer a range of solutions to the semiconductor, solar and other high performance industries for thermal management, high speed power management and data communication solutions.


Since acquiring CUI approximately two years ago, Waytronx has made a concerted effort to cut the $40 million in debt it took on to finance the deal.  Today was another significant step in not only cutting the level of debt, but restructuring the servicing of the remaining debt to a more attractive level for the company.


Waytronx has negotiated a reduction in the balance due on the term note from US$14 million to US$10.3 million and also extended the maturity date from May 2011 to May 2018, effectively moving the debt on the balance sheet from short term to long term debt.  The company will pay annual interest of 6%.

Crucially, the holder of the note (IED, Inc) has also agreed to forgo a payment of approximately US$2.3 million (principle and interest) immediately in return for a payment of US$1.5 million on December 1st and a second payment of $0.188 million in the first quarter of 2011.  IED has further agreed to accept interest only payments until December 1st, immediately cutting Waytronx`s monthly servicing costs from $400,000 to $145,000.


Since acquiring CUI, Waytronx has cut its debt burden from US$40 million to under $15 million, excluding a recently secured line of credit with Wells Fargo.


 “The retirement and extension of this debt under these circumstances demonstrates the confidence that these investors have in our performance to-date and our plans moving forward. The company is grateful to these individuals for putting us in a position where we can now service all of our debt from cash flow, while continuing to focus on our core business and bringing exciting new technologies to the market,” William Clough, CEO and President of Waytronx, stated.


In August, Waytronx reported that second quarter revenues climbed 40% over the first quarter to US$10.7 million, while EBITDA came in at an impressive S$6.5 million as the company held gross margins at 37% while continuing to keep a tight lid on costs.

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