Acme United Enters $11.6 Million Fixed Rate Mortgage Facility

Rhea-AI Summary

Acme United Corporation (NYSE American: ACU) has secured a new mortgage agreement with HSBC Bank NA for $11.6 million at a fixed rate of 3.8% over seven years and a 20-year amortization. Approximately $3 million of this amount was allocated to pay off the existing mortgage on its Vancouver property. CEO Walter Johnsen highlighted that this arrangement not only mitigates inflation risks by fixing the interest rate but also enhances the company’s debt capacity by $8.6 million for growth and potential acquisitions.

Positive

• Secured a new mortgage agreement of $11.6 million at a fixed rate of 3.8%.
• Increased debt capacity to fund growth and potential acquisitions by $8.6 million.
• Refinanced existing mortgage on the Vancouver property, improving financial stability.

Negative

• None.

SHELTON, Conn., Dec. 07, 2021 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) announced that it has entered a new mortgage agreement with HSBC Bank NA covering its properties in Vancouver, Washington and Rocky Mount, North Carolina. The new mortgage is $11.6 Million with a fixed rate of 3.8%. The term is 7 years with a 20-year amortization. Approximately $3.0 million of the new mortgage was used to pay the existing mortgage on the Vancouver property.

Walter Johnsen, Chairman and Chief Executive Officer of Acme United, said, “During this time of increasing inflation, we are pleased to fix the interest rate on $11.6 million of our capitalization. The new facility also increases our debt capacity to fund growth and potential acquisitions by $8.6 million.”

Mr. Johnsen concluded, “We would like to thank HSBC for its help and support.”

ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, DMT®, and Med-Nap. For more information, visit www.acmeunited.com.

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include the extent of the COVID-19 pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic including through existing and any new variant strains of the underlying virus; the continuing effectiveness, global availability, and public acceptance of vaccines; the duration and scope of pandemic-related government orders and restrictions on commercial and other activities, including retail store, office, school and restaurant closures; the duration and scope of the Company’s actions to maintain employee health at our offices, production facilities and distribution centers; the extent of the impact of the COVID-19 pandemic on overall demand for the Company’s products; the pace and strength of economic recovery and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to the on-going world-wide economic turbulence, and potential disruptions in our supply chain, any of which could adversely impact the Company’s ability to manufacture, source or distribute it products, both domestically and internationally.

These risks and uncertainties further include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, whether caused by COVID-19 or otherwise, including the impact on the Company’s suppliers and customers; (iii) the potential disruptions in the Company’s supply chains, whether caused by COVID-19 or otherwise; (iv) changes in client needs and consumer spending habits, including COVID-19 related changes; (v) the impact of competition; (vi) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (vii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (viii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including additional inventory acquired to respond to COVID-19 related uncertainties; (ix) the impact of any increases in inflation; (x) currency fluctuations; (xi) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (xii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

CONTACT:        
Paul G. Driscoll        
Acme United Corporation
Phone: (203) 254-6060        
FAX: (203) 254-6521

FAQ

What is Acme United Corporation's new mortgage agreement amount?

Acme United Corporation has entered a new mortgage agreement for $11.6 million.

What is the interest rate of Acme United's new mortgage?

The interest rate of the new mortgage is fixed at 3.8%.

How does the new mortgage benefit Acme United Corporation?

The new mortgage fixes the interest rate and increases the company's debt capacity for growth by $8.6 million.

What portion of the new mortgage was used to pay off an existing loan?

Approximately $3 million of the new mortgage was used to pay the existing mortgage on the Vancouver property.