Syntax-Brillian Gets $250M Credit Line, Sees 60-80% Revenue Growth

Shares of Syntax-Brillian are up 5.4% in pre-market trading after the maker of Olevia TVs said it secured a $250 million credit facility, which it said will help it achieve revenue growth targets of 60% to 80% in calendar 2008. "The financing strengthens the company's balance sheet and is expected to measurably enhance our ability to take advantage of rapidly growing demand for LCD televisions worldwide," said CEO James Li. The facility will also be used to repay $80M in debt. It was arranged by Silver Point Finance, with commitments from Citi, CIT, Wells Fargo Foothill, and Wachovia. "We anticipate that the net new funds available will allow us to meet national big-box retailers' expected demand for product through the end of our fiscal year 2008, as well as provide the resources to enable us to achieve year-over-year revenue growth of 60% to 80% in calendar 2008, compared to estimates of approximately 35% for the industry as a whole. In addition, this strategic financing gives Syntax-Brillian the opportunity to further develop direct relationships with institutions of the caliber of those participating in this financing." On Monday, Syntax announced Wired Magazine declared its Olevia 747i LCD HDTV the "best of test" TV in the 38" to 49" category.

Sources: Press release I, II, Wired
Commentary: Syntax-Brillian: Destroying Shareholder Confidence and Value • Is Syntax-Brillian a Bargain?
Stocks to watch: BRLC. Competitors: PHG, SNE. ETFs: PZI

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