Key Developments For Merix Corp
Merix Corp (MERX.O) (Consolidated Issue listed on NASDAQ Global Market)
Viasystems Group, Inc. and Merix Corporation Agree to Merge
Viasystems Group, Inc. and Merix Corporation announced that they have entered into a definitive agreement to merge their businesses. Major Terms of the Agreement include: each Merix share will be converted into approximately 0.11 newly issued shares of Viasystems, subject to adjustment, which will be publicly traded on the NASDAQ upon completion of the transaction; approximately 98% of holders of Merix $70 million convertible senior subordinated notes due 2013 have agreed to enter into an exchange agreement whereby their notes will be exchanged for approximately 1.4 million newly issued Viasystems shares plus a total cash payment of approximately $35 million; following the merger transaction and note exchange, approximately 20 million newly issued Viasystems shares will be outstanding; existing Viasystems shareholders will own approximately 80.5% of the combined company, existing Merix shareholders will own approximately 12.5% and Merix convertible note holders will own approximately 7.0%. Completion of the transaction is expected by the end of calendar year 2009. The cash consideration will be financed by Viasystems` existing cash on hand. Concurrent with the closing of the merger transaction, Wells Wachovia has committed to enter into a new $75 million line of credit with Viasystems.
Merix Corporation Issues Q1 2010 Revenue Outlook Below Analysts' Estimates
Merix Corporation announced that it currently anticipates first quarter 2010 revenues to stabilize and remain relatively flat when compared to the fourth quarter of 2009. The Company reported revenue of $58.9 million in the fourth quarter of 2009. According to Reuters Estimates, analysts on an average were expecting the Company to report revenue of $63 million for the first quarter of 2010.
Merix Corporation Announces New China-Based Credit Facility
Merix Corporation announced a credit agreement with Industrial and Commercial Bank of China (ICBC) that provides for up to RMB50 million (U.S. dollar equivalent of approximately $7.3 million) of borrowing under a credit facility with the Company's Huiyang, China-based factory. The credit facility is secured by the building and land-use lease rights at Merix' recently expanded Huiyang manufacturing facility. Initial availability is 36 million RMB (approximately USD5.3 million). The balance of the borrowings under the credit facility is anticipated to be fully available within 90 days upon perfection of the security interest in the building. Amounts drawn against the credit facility are payable one year after the date of the first advance and can be used to fund working capital and other general corporate purposes for Merix' operations in Asia.
Merix Corporation Announces Multi Million Dollar Order From Rockwell Collins
Merix Corporation announced a multi-million dollar order from Rockwell Collins. Rockwell Collins will use Merix's technologically advanced PCBs in the design and development of sophisticated, mission-critical solutions for both military and defense use. These include flight deck avionics, cabin electronics, information management, military communications and simulation and training applications.
Merix Corporation Issues Q4 2009 Revenue Guidance Below Analysts' Estimates
Merix Corporation announced that for fourth quarter of 2009, it expects revenues to stabilize and remain relatively flat when compared to the third quarter of 2009. The Company reported revenues of $60.7 million in third quarter of 2009. According to Reuters Estimates, analysts were expecting the Company to report revenues of $69 million for fourth quarter of 2009.
