Pro-Dex (NASDAQ:PDEX) Amends Credit Agreement, Extends Maturity Date of Revolving Line of Credit

Pro-Dex, Inc. (the “Company”) recently announced the entry into an Amendment to Amended and Restated Credit Agreement with Minnesota Bank and Trust, extending the maturity date of its $7,000,000 revolving line of credit with MBT from December 29, 2025, to December 29, 2026. This Amendment, along with an Amended and Restated Revolving Credit Note, marks significant changes in the financial standing of the company.

As of the date of the report, the Company has utilized $3,500,000 of the Revolving Loan, with the entire amount outstanding. A loan extension fee of $10,000 was paid to MBT in conjunction with these Credit Agreement Amendments. The Revolving Loan, bearing an interest rate of either 4.0% or SOFR plus 2.5%, is subject to monthly interest payments from the initial borrowing date until the maturity date, with any remaining principal due in full at maturity.

In instances of default, the interest rate of the Revolving Loan increases by 3%, and MBT reserves the right to demand full payment. The Credit Agreement and Revolving Note include customary representations, warranties, covenants, and events of default typical for such financial agreements.

Exhibits attached to the report provide further details on the Amendment and the Revolving Note. It’s important to note that the representations, warranties, and covenants in these documents were made for specific transaction purposes, are subject to limitations agreed upon by the parties involved, and may be influenced by contractual risk allocation rather than factual representations. Investors are advised to refer to the Company’s official disclosures filed under the Securities Exchange Act of 1934 for the most accurate and up-to-date information.

The Company’s adherence to these amended credit agreements signifies a strategic financial move that could potentially impact its operations and growth trajectory in the near term.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Pro-Dex’s 8K filing here.

About Pro-Dex

Pro-Dex, Inc designs, develops, manufactures, and sells powered surgical instruments for medical device original equipment manufacturers worldwide. The company offers autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers that are primarily used in the orthopedic, thoracic, and craniomaxillofacial markets.