Asyst defaults on KeyBank credit facility, misses March 31 payments

By Caroline Salls

Pittsburgh, April 13 - Asyst Technologies, Inc. has received a default letter from credit agreement administrative agent KeyBank NA in connection with the company's failure to pay interest and fees due on March 31, according to an 8-K filed Monday with the Securities and Exchange Commission.

The lenders have not exercised any of their default-related rights and have not accelerated the maturity of the credit agreement, according to the 8-K. However, the company said the additional 2% default interest rate is in effect, and Asyst cannot request any outstanding loans be continued as Libor rate loans or converted to Libor rate loans.

In addition to the missed payments, the default notice was also prompted by the company's failure to pledge certificates evidencing 4.95% of the outstanding equity interests of Asyst Technologies Japan, Inc. acquired by Asyst Technologies Japan Holdings Co. Inc.

The company said it also maintained lines of credit with Japanese banks in excess of amounts permitted under the credit facility and informed the lenders that it will not be in compliance with financial covenants for the period ended March 31.

Asyst said it also advised the lenders that repayment has been demanded under some lines of credit with Japanese banks, and the company has not provided bank account security interests for the benefit of the lenders.

As of April 7, there was $76.5 million in principal outstanding under the credit agreement.

Asyst develops automation products for the semiconductor industry and is located in Fremont, Calif.

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