HOLTSVILLE, N.Y.-Mobile enterprise software developer Symbol Technologies Inc. announced Wednesday that it has opted not to pursue its proposed offering of common stock.
Instead, the company said it has entered into a new $250 million credit facility that will act as the permanent financing vehicle for its acquisition of Matrics Inc. The facility will consist of a three-year, $100 million term loan and a five-year, $150 million revolving secured line of credit.
“After reviewing our options and considering what would be in the best interests of our shareholders, we decided that establishing a new credit facility was a superior financing mechanism, as compared to proceeding with an equity offering,” said William Nuti, Symbol’s president and chief executive officer. “The main driver of our decision to switch gears away from an equity offering is the strength of our cash flow and the confidence we have in our ability to extinguish this debt.”
