* Says does not expect changes to cash flow leverage ratio
* Says credit agreement continues to mature on Nov. 1 2011
May 3 Chip equipment maker Entegris Inc
(ENTG.O) said it has entered into discussions with Wells Fargo
Bank to reduce the size of a revolving credit commitment amount
to $60 million from $121.7 million.
The company said it does not expect significant changes to
the cash flow leverage ratio or fixed charge coverage ratio
covenants of the credit agreement, which would continue to be
secured and would continue to mature on Nov. 1, 2011.
Entegris had outstanding borrowings under the revolving
credit facility of $36.4 million as of April 3, 2010, with an
additional $1.9 million undrawn on outstanding letters of
credit, according to a regulatory filing.
The company expects to completely repay all outstanding
amounts under the credit facility by the end of the third
quarter of this year, it said in a statement.
"Based on current business trends, we no longer need such a
large credit commitment and do not want to pay the fees
associated with that level of commitment," Chief Financial
Officer Gregory Graves said.
"We do not anticipate needing to borrow under the Credit
Agreement after we have paid off our outstanding balances," he
Shares of the company fell as much as 8 percent to $6.19 in
trading after the bell. They closed at $6.75 Monday on Nasdaq.
(Reporting by Shrutika Verma in Bangalore; Editing by Jarshad