3D Systems Corporation (DDD) has announced its agreement for a $150 million unsecured revolving credit facility. The five-year facility comes with a scope for adding another $75 million to the company’s credit.
A leading player in the 3D printing industry, 3D Systems has a robust balance sheet with cash and cash equivalents of about $570.3 million as on Jun 30, 2014.
Major banks including PNC Bank National Association and PNC Capital Markets LLC, units of The PNC Financial Services Group, Inc. (PNC), the U.S.A banking unit of HSBC Holdings plc (HSBC) and Capital Bank Financial Corp. (CBF) will contribute to the credit facility. These banks will play the roles of administrative agent, lead arranger, book running manager and syndication agent, apart from being a lender.
3D printing technology has lately been witnessing rapid adoption across various industries, technology and solutions, leading to severe competition in the domain. As such, the company has been focused on driving growth both organically and inorganically. Specifically, 3D Systems has been pursuing strategic acquisitions to diversify its offerings and gain market share. Since 2012, the company has closed and announced over 25 acquisitions, the recent ones being Simbionix and LayerWise.
The latest credit facility is crucial for enhancing this Zacks Rank #3 (Hold) company’s core capital structure and flexibility. This, in turn, would facilitate free growth for maintaining the company’s premier position in the industry amid stiff competition from peers.
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