Micropac Industries, Inc. Enters into Construction Loan Agreement with Frost Bank
March 31, 2021 at 01:36 pm EDT
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Micropac Industries, Inc. announced that on March 26, 2021, the company renewed the Revolving Loan Agreement with Frost through the Sixth Amendment to Loan Agreement. The Revolving Loan Agreement provides for revolving credit loans, in amounts not to exceed a total principal balance of $6,000,000 with a rate equal to prime rate. The Revolving Loan Agreement was originally entered into on January 23, 2013, between the company as borrower and Frost as lender. Subject to the terms of the Loan Agreement, Frost will lend to the company an aggregate amount not to exceed $16,160,000.00. Principal and interest shall be due and payable monthly in an amounts determined by Lender required to fully amortize the outstanding principal balance of this Note over a period of twenty-five years, payable on the twenty-sixth day of each and every calendar month, beginning April 26, 2023, and continuing regularly thereafter until March 26, 2031, when the entire amount hereof, principal and accrued interest then remaining unpaid, shall be then due and payable; interest being calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. The interest rate of (3.40%) per annum including an Interest-Only Period. Interest only shall be due and payable monthly as it accrues on the twenty-sixth day of each and every calendar month, beginning April 26, 2021, and continuing regularly and monthly thereafter until March 26, 2023; interest being calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender shall determine. Subject to the terms of the, Loan Agreement, Frost will lend to the company, on a revolving basis, amounts not to exceed a total principal balance of $6,000,000.00, minus amounts available and amounts previously disbursed under outstanding Frost letters of credit. Subject to certain terms and conditions, the company may borrow, repay and reborrow under the Loan Agreement. The interest on the outstanding and unpaid principal balance shall be computed at a per annum rate equal to the lesser of (a) a rate equal to the Prime Rate per annum; provided, however, in no event shall the resulting rate be less than three and one-quarter % (3.25%).
Micropac Industries, Inc. is engaged in designing, manufacturing, and distributing various types of microelectronic circuits, including solid state relays and power controllers, optoelectronic components, and sensor and display components and assemblies. The Company's products are used as components and assemblies in a broad range of military, space, medical and commercial systems, including aircraft instrumentation and navigation systems, satellite systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200 degree Celsius) products. The Company's products are either custom (being application-specific circuits designed and manufactured to meet the requirements of a single customer) or standard proprietary components. It provides microelectronics, sensors and displays, and optoelectronics products, to include components and assemblies that offer a wide range of products sold to the industrial, medical, military, aerospace, and space markets.