Bank of America (NYSE:BAC), Fifth Third Bank (NASDAQ:FITB) and GE Capital Corp. (NYSE:GE) entered into a $225 million senior secured credit facility with X-Rite Inc. (NASDAQ:XRIT).
X-Rite said it will use the capital to refinance it debt and to redeem all its outstanding preferred stock. The company has $49.4 million in outstanding preferred stock.
Terms of the deal are a revolving credit facility up to $55 million and a term loan up to $170 million.
Part of the strategy is to lower the cost of capital. In the first year the company will save approximately $10 million in annual interest expense, down from $28 million in 2010.
X-Rite will record charges of about $14 million in the refinancing.
The company closed Wednesday at $4.75, gaining $0.02, or 0.42 percent.
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