The L.S. Starrett Company announced a new loan agreement with expanded credit facilities and a new global banking relationship with HSBC bank. The new agreement replaced the Company's previous TD Bank credit facilities and is comprised of a $30 million revolving line of credit, a $12.1 million term loan and a $7 million capital expenditure draw down credit facility. The facilities are secured by a valid first-priority security interest on substantially all existing and future assets of the Company and its domestic subsidiaries.

The Company believes that the agreement provides sufficient liquidity and flexibility to support the current and projected growth needs of the company. The new credit facilities contain financial covenants and the customary affirmative and negative covenants, including limitations on indebtedness, liens, acquisitions, asset dispositions, fundamental corporate changes, excess pension contributions, and certain customary events of default. The Global banking relationship is expected to enhance the Company's overall global liquidity and treasury management capabilities.