Westell Technologies has tapped existing lead LaSalle National Bank to increase its existing $30 million credit facility to accommodate plans for expansion within the next year. Nicholas C. Hindman, cfo, said a $10 million dollar increase will provide a "funnel of potential" for expansion through several small acquisitions similar to Westell's December 2005 $14.3 million purchase of HyperEdge Corp.
The new facility consists of a three-year, $40 million revolver priced at LIBOR plus 1 1/2%--a rate considerably more favorable than the previous facility's LIBOR plus 2 1/2%.The new credit comes just as the old financing was set to expire on June 30. This is Westell's third credit renewal with LaSalle.
Hindman said Westell chose LaSalle because of its strong partnership in the past. "They stay with you when times are tough," he said, citing LaSalle's support during Westell's 2001-2002 difficulties during the telecom bust. Hindman said that Westell checked the market by holding informal discussions with its other relationship bank, National City Bank when first considering the new facility in order to make sure that LaSalle's rates were still competitive. "We probably couldn't have done any better anywhere else," he said.