Boosting its balance sheet with the recent sale of its Quality Assurance business to UL, encapsulant materials specialist, STR Holdings has secured a US$150 million revolving credit facility with Bank of America. The credit facility is designed to support growth in the solar sector as STR becomes focused solely on the PV industry.
“The proceeds from the recent sale of our Quality Assurance business, along with existing cash, enabled us to repay our long-term debt and retire our credit facility. Those transactions, combined with the closing of this new credit facility at a much lower interest rate, have significantly strengthened STR's balance sheet and liquidity profile. These actions provide us with increased financial flexibility to continue our profitable growth strategy in the solar industry,” said Barry A. Morris, Executive Vice President and Chief Financial Officer of STR Holdings, Inc.
STR also noted that the new credit arrangement enables it to increase the commitments by up to US$50 million, subject to the satisfaction of certain conditions, though the company said this would was not expected in the short-term.
Recently, a competitor in the PV materials market, Solutia announced the acquisition of Southwall Technologies for nearly US$133 million. Materials providers are looking at expansion strategies to gain market share and build scale to reduce costs in a highly competitive sector of the market.