Enfield-based STR Holdings has announced that its wholly owned Spanish Spanish subsidiary, Specialized Technology Resources Espana S.A., entered into a factoring agreement to sell, with recourse, certain European, U.S., and other foreign company-based receivables to Eurofactor Hispania S.A.U. It will allow the company to receive up to 1 million Euros in advance funds against future receivables.
According to a statement from its U.S. headquarters, STR Holdings took the step to improve its cash liquidity. Factoring is when a company sells its receivables, usually at a discount, to get much needed cash upfront. STR said in a statement the annual discount rate is 2 percent plus the Euro Interbank Offered Rate (EURIBOR) for Euro denominated receivables, and 2 percent plus the IntercontinentalExchange London Interbank Offered Rate (LIBOR) for all other currencies.
“We are very pleased to secure a factoring facility to accelerate our Spanish operation’s cash conversion cycle and improve STR’s global liquidity,” said Joseph C. Radziewicz, STR’s vice president and chief financial officer.
STR has struggled of late. At the end of September, it was delisted from the New York Stock Exchange because the price of its stock had dropped too low. At its peak in November 2010, the company’s stock was trading at $77.19 per share. This morning it was trading at 52 cents on the OTC Pink Marketplace.
