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Aeroflex Holding Corp. (ARX - Snapshot Report), a leading global provider of microelectric components, recently announced that its wholly-owned subsidiary, Aeroflex Incorporated, has made certain amendments in its senior secured credit agreement.

With the amendment, Aeroflex has increased its outstanding loan by $6million to $612 million and extended its tenure by 18 months to Nov 2019. The company has also removed its leverage ratio (total debt/ adjusted EBITDA) covenant from the agreement. Also, the amendment has reduced the effective interest payable by the company on its outstanding loan by 1.25%. Additionally, the amendment has reduced the available amount under the revolving credit facility from $75 million to $57.1 million.

The amendments in credit facility will likely result in annual interest expense savings of about $7.3 million or 5 cents per share after tax in exchange for a one-time fee and expenses totaling $4 million.

Aeroflex has repaid around $120 million of the term loan with cash on hand from operations over a period of two years and intends to use the interest savings through the current amendment to reduce its debt burden. As on Mar 31, 2013, the company had net cash of $43 million from its operating activities.

Aeroflex manufactures various components and equipment for diverse industries like space, avionics, defense, and commercial wireless communications. It currently retains a Zacks Rank #3 (Hold).

Some other stocks within the industry worth mentioning are Integrated Device Technology, Inc. (IDTI - Snapshot Report), OmniVision Technologies, Inc. (OVTI - Analyst Report), each carrying a Zacks Rank #1 (Strong Buy) and Freescale Semiconductor, Ltd. (FSL - Snapshot Report), which carry a Zacks Rank #2 (Buy).

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