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HALIFAX CLOSES NEW LINE OF CREDIT
JUNE 17, 2009
ALEXANDRIA, VA –June 17, 2009 - Halifax Corporation of Virginia.
(NYSE Alternext US: HX), today announced that it has closed on a new one year
line of credit for $1.5 million with Sonabank, which is intended to replace the
Company’s existing line of credit. The facility has a variable interest rate
which is 2.75 basis points above the Wall Street Journal Prime Rate (the
“indexed rate”) and is subject to adjustment based on changes in the indexed
rate. Full details regarding the terms of the financing arrangement are included
in the Company’s Current Report on Form 8-K to be filed with the SEC on June 17,
2009.
Key Points
- Our outstanding bank debt has declined dramatically and currently stands at
less than $600,000. This compares to outstanding bank debt of $2.5 million and
$4.4 million, respectively at March 31, 2009 and 2008.
- We believe our new line of credit is adequate to cover our internal cash flow
requirements for the coming year.
- As a result of our profitability for 2009, our view that such performance is
sustainable and our current accounts receivable position , we believe that the
Company can increase its borrowing capacity in FY 2010 should the need arise in
the future.
McNew added, “Our supply chain services program (Enterprise Logistics Solutions)
is being well received in the business process outsourcing market on both a
domestic and international basis and is affording us a variety of higher margin
growth opportunities. We are pleased with our progress despite the difficult
economic environment. Our legacy enterprise maintenance business has its
challenges but given the current state of our sales pipeline it appears to be on
track for an acceptable performance in the coming year”.
Founded in 1967, Halifax Corporation is an enterprise logistics and maintenance
solutions company providing a wide range of technology services to commercial
and government customers throughout the United States. The Company’s principal
products are enterprise logistics solutions and high availability hardware
maintenance services. More information on Halifax can be found at
www.hxcorp.com.
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