Methode draws down $100 million under revolving credit facility

By Sarah Lizee

Olympia, Wash., March 27 – Methode Electronics, Inc. drew down $100 million under its revolving credit facility on March 23, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent on the revolver.

The company said it elected to make the draw as a purely precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 pandemic.

The proceeds are being held on the company’s balance sheet and may be used for working capital and general corporate purposes.

Prior to the draw, the company had about $10 million in outstanding borrowings under the revolver.

The revolver matures Sept. 12, 2023, and the company may repay amounts borrowed under the revolver at any time without fees or penalty.

Chicago-based Methode designs, manufactures and markets electronic components.

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