Dynasil Corp. of America announced Tuesday that it has completed the refinancing of its debt with Sovereign/Santander Bank. The move increases its line of credit from $1.2 million to $8 million and provides considerable interest and cash flow savings, the company said.

The loan agreement provides for a five-year $9 million term loan at an interest rate of 5.58 percent. The loan replaces all of the company's outstanding debt and lowers Dynasil's weighted average cost of debt by 18 percent, from 6.82 percent to 5.58 percent, the company said.

The loan also provides a $3 million working capital line of credit at an interest rate of prime or one month LIBOR (London Interbank Offered Rate) plus 2.75 percent and a $5 million acquisition line of credit at an interest rate of one month LIBOR plus 3.5 percent, the company said.

Including the repayment of a $2 million note coming due in October, there is an expected $3 million overall reduction in loan payments over the next 12 months, which frees up cash flow to fund growth activities and provides liquidity for the company’s working capital requirements, long-term financing needs and acquisition financing, Dynasil said.

Dynasil manufactures specialized instruments and products, including handheld lead paint detectors, medical probes, diffraction gratings, reflective coatings and fused silica.

For more information, visit: www.dynasil.com