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GSI Group Inc., a laser technology company in Bedford, has entered into a new $80 million credit agreement to refinance its existing debt, the company reported, a little more than a year after emerging from bankruptcy.
Through Bank of America, Silicon Valley Bank, Merrill Lynch, Pierce, Fenner & Smith Inc. and HSBC, GSI Group has refinanced all of its 12.25 percent senior secured notes that were due in 2014. The lenders in the new $80 million agreement provided a $40 million, 4-year, term loan facility and a $40 million, 4-year, revolving credit facility that matures in 2015. GSI Group (Nasdaq: GSIG) officials say this will save them approximately $2.3 million per year in interest.
In February, GSI Group won approval from the U.S. District Court for the District of Massachusetts to release just under one million shares to finally settle a filed class action shareholder lawsuit. The suit, titled “Wiltold Trzeciakowski, Individually and on behalf of all others similarly situated v. GSI Group Inc., Sergio Edelstein, and Robert Bowen” was filed in December of 2008.
Founded in 1970 as Lumonics Corp., GSI Group makes lasers, motion systems and components for a variety of industries, including electronics and semiconductor manufacturing, as well as the medical field. The company used to be traded on the Nasdaq under the ticker “GSI,” but the company received a delisting warning in November 2009 for failing to maintain the exchange’s minimum stock-price threshold of $1 per share for 30 consecutive business days. The notice was GSI’s third delisting notice that year.
The company went through a Chapter 11 bankruptcy and emerged in July of 2010. GSI Group fell to the Pink Sheets during that time, but in December of last year, the company executed a 1-for-3 reverse stock split, reducing its total issued and outstanding common shares to 33.3 million, and putting its price-per-share back in the range required by Nasdaq. GSI Group is again trading on the Nasdaq market under the original ticker symbol “GSIG.”
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