SAN MARCOS, Calif., May 18 -- Natural Alternatives International ("NAI"), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, announced today it obtained a new $12.0 million credit facility from Wells Fargo Bank and its subsidiary, Wells Fargo Equipment Finance. The new facility is comprised of an $8.0 million working capital line of credit with a 2.5 year term and $4.0 million in term loans. The new facility replaces an existing $4.0 million working capital line of credit and $1.8 million term loan at interest rates that are currently lower than the previous facility.
CFO John Reaves said, "The new credit facility will provide an immediate $2.2 million increase in our cash position and will increase our borrowing capacity under the line of credit by an additional $4.4 million. This credit facility should enhance our ability to execute our long-term growth plans, implement our business strategies and build upon the momentum we have established in improving our financial performance."
NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements that provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at http://www.nai-online.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to the impact of having and maintaining long-term financing. We wish to caution readers that these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. The forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.