Today, 3D printing industry leader 3D Systems has entered into a $150 million five-year, unsecured revolving credit facility with its group of lenders. With the new credit facility, the company, which has made a reputation for regularly acquiring smaller businesses, will have an initial aggregated $150 million with which to meet its financial goals. In addition to this first $150 million, the company may be able to augment the loan with an extra $75 million.
3DS CEO Avi Reichental, said of the Credit Agreement, “Our enhanced capital structure will allow us to strategically execute on our focused long-term initiatives for the benefit of all of our constituents,” adding, “This credit facility strengthens our capital structure and provides us with greater financial flexibility to decisively execute our growth strategy.”
As a result of the news, 3DS shares are up 3.83% at the time of this writing, pushing the share price to $40.70. At the moment, there are 11- million outstanding shares and the company has a market cap of $4.4 billion. What they’ll use the dough for has yet to be released, but you can have fun speculating! It’s possible that they’re getting extra cash to defend against HP’s more focused entry into the 3D printing space, as Reichental mentioned in a Fox News report recently a fear of HP’s presence in the market:
I have been worried for quite some time, which is why we have launched more than 24 new products in the last three months, which is why we acquired the Xerox Wilsonville R&D team to begin to catapult our capabilities forward. And in the meantime HP keeps moving the date further out.
My own vision for the company is that they will be 3D printing chicken because, about a week ago, I had a dream that Avi personally 3D printed the best piece of chicken I’d ever eaten.
