Parlex Corporation Completes Financing Transactions

Parlex Corporation (NASDAQ:PRLX), has completed the sale and leaseback of its facilities in Methuen, Massachusetts and Cranston, Rhode Island for $12,000,000, which consists of $2.65 million on a 3 year interest bearing term loan, a potential earn out of $1 million over 5 years and $8.35 million paid at closing. The proceeds were used to pay down the Company's working line with Fleet Bank. In addition, the Company has secured a new $10 million working capital line of credit agreement with Silicon Valley Bank. The two-year line of credit agreement replaces the Fleet Bank loan and is intended to provide the working capital necessary for projected growth through fiscal year 2005. In connection with the new loan facility, Parlex granted Silicon Valley Bank a warrant to purchase up to 250,000 shares at an exercise price of $6.885 per share. Peter J. Murphy, Parlex president and CEO stated, "The sale of property allows Parlex to focus its resources on our core business as we transition back to profitability. While we have had a long and supportive relationship with Fleet Bank, we believe the retirement of that debt coupled with our new line of credit with Silicon Valley Bank will allow us to place all of our energy addressing the operational opportunities that will significantly improve financial performance."Source: PCBnewsline