Pro-Dex, Inc. Updates Information Regarding Its Credit Agreement With Wells Fargo Bank

Oct 13, 2010, 17:16 ET from Pro-Dex, Inc.

IRVINE, Calif., Oct. 13 /PRNewswire/ -- PRO-DEX, INC. (Nasdaq: PDEX) today provided updated information regarding its Credit Agreement with Wells Fargo Bank, which consists of two facilities: (a) a revolving credit line of up to $1 million against which Pro-Dex has no borrowings outstanding, and (b) a five-year term loan, with a currently outstanding balance of $1.2 million.

The Credit Agreement, which governs both the revolving credit line and the term loan, contains covenants that are based on 12-month historical profitability computations, with which the Company is in violation for the quarter ended September 30, 2010 as a result of write-offs taken by the Company in the fourth quarter of its fiscal year ended June 30, 2010.

On October 8, 2010, Pro-Dex was informed by Wells Fargo Bank that the bank does not intend to renew the revolving credit line which expires as of November 1, 2010.  As there are no outstanding borrowings on such credit line, this information will have no immediate effect on the Company.  With respect to the term loan, Wells Fargo has taken no action and has not indicated any intention to do so.

Mark Murphy, Pro-Dex's Chief Executive Officer commented, "We understand Wells Fargo Bank's decision to allow the revolving credit line to expire given the Company's lack of use of that facility for the last several years, and are actively pursuing a new credit relationship."  Murphy continued, "Pro-Dex's current liquidity position would allow for repayment of the term loan from existing cash on hand should that become necessary before a new credit arrangement is in place."

Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate miniature rotary drive systems, embedded motion control and fractional horsepower DC motors, serving the medical, dental, semi-conductor, scientific research and aerospace markets.  Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities and high tech manufacturing operations around the world.  For more information, visit the Company's website at

Statements herein concerning the Company's plans, growth and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.

SOURCE Pro-Dex, Inc.