STR Holdings Inc. Holdings Inc. signed a new, four-year $150 million credit line, providing extra liquidity for the Enfield solar manufacturer.
STR said Tuesday it may increase its borrowing by up to $50 million, under certain conditions, adding it has no immediate plans to begin tapping the line.
Bank of America is administrative agent for the multi-bank facility that carries an interest rate tied to the London Interbank offered rate (LIBOR) plus 2 percent to 2.5 percent, depending on STR's consolidated leverage ratio.
STR finance chief Barry A. Morris said the new line is a follow up to the firm's previous pledge to use proceeds from its $275 million sale of its quality-testing in September to retire its previous outstanding debt.
STR also said its fresh liquidity will enable to it to focus on production and sales of photovoltaic components.
Last week, STR announced the accelerated shutdown of its manufacturing facility in St. Augustine, Fla., laying off 45 people and consolidating the operation to its East Windsor facility.