Oct 26, 2015 | By Kira

Industrial 3D printer manufacturer and service provider ExOne today announced that it has entered into a five-year revolving credit agreement of $15 million, potentially expandable to $30 million, financed indirectly by ExOne’s Chairman and CEO S. Kent Rockwell.

The agreement was signed between ExOne and RHI Investments LLC, which is controlled by Rockwell. According to the agreement, ExOne can borrow, repay and re-borrow at any time before the expiration date. Loans drawn against the facility will bear interest at LIBOR (a benchmark rate that some leading world banks charge each other for short-term loans), and ExOne will be required to pay a commitment fee of 1% per annum on the undrawn portion. While subject to certain conditions, the agreement provides the opportunity to increase the facility by an additional $15 million.

With its focus on producing metal 3D printing technology for industrial applications, ExOne’s business format primarily consists of manufacturing and selling 3D printing machines under lease financing. The $15 million credit agreement will allow the company to facilitate lease financing to customers using loan proceeds, increasing their installed machine base beyond the current 200+ machines in service. The agreement will also be used for working capital and general corporate purposes.

ExOne Chairman and CEO S. Kent Rockwell

“We are responding to increasing opportunities for both machine sales and 3D printed products for customers as we have expanded our platforms and applications,” said Rockwell. “A key benefit of this credit facility is to help ExOne grow its installed machine base through additional machine leasing and to further enhance our working capital position as we transition our emerging business to a profitable, cash generating company." According to a press release, Rockwell beneficially owns roughly 3.2 million shares of ExOne common stock, representing about 22% of shares outstanding. The credit facility was pre-approved by ExOne’s Audit Committee and of the independent members of its Board of Directors.

Earlier this year, ExOne partnered with Bruil and 3Dealise to fabricate large-scale concrete structures using an ExOne S-Max 3D printer. Shortly after that, they revealed their largest 3D printing system, the Exerial, which contains multiple industrial stations that allow for continuous production and simultaneous processing. ExOne offers services in the United States, Germany, Italy, Sweden and Japan, and builds its in-house 3D printers at facilities in the US and Germany.

 

 

Posted in 3D Printer Company

 

 

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