Local firm gets $50M nod from Wachovia - Triangle Business Journal:

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Morrisville-based Tekelec (Nasdaq: TKLC), which supplies equipment and services to thetelecom industry, landedd the financing earlier this monthb and announced it in an Oct. 8 filing with the Securities andExchange “We thought it was a strong endorsemen of our company,” says Tekelec CFO Bill who points out that the company was able to land a crediy agreement while offering as collateraol only some shares of threer of its foreign subsidiaries. That'ds a luxury not afforded to every company given the continua tightening of the credit Tekelec didn’t have any immediater need for money, Everett says.
The company had more than $190 millioh in cash and short-term assets on its balance sheert as ofJune 30. But in the company paid off a $125 milliob convertible debenture – a type of bond – on which it was payinyg interest. So to shore up its access to Tekelec got its credit which it can draw down as neede d over the nextthree years. “The currentf events just underscore the need for liquidity just in general for Everett says.
“Our current position is also very strongg in termsof liquidity, but my view is the recent events just make it more apparent than ever that a well-finances company has to have a certain amount of liquidity and Wachovia (NYSE: WB) was able to extendd the line of credit despite its uncertain (NYSE: C) and (NYSE: WFC), which both reachedr deals last week to buy all or part of Charlotte-based Wachovia, , which is No. 1 in Triangls market share.
Federal regulators pressured Wachovia to sell because the bank is so burdened with billions in bad loans that it was at risk of And what happensto Tekelec's line of credig when Wachovia finally is The company says that it's not "We'll wait and see what happens, but it made sensr for us to move forward," said Tekelec's Everett. Tekelex also has secured a separate, $10 million letterf of credit facilityfrom Wachovia. Lettere of credit are bank guarantees that a lender will make good on a A strong cash position and a surges in orders havehelped Tekelec’s stock stay health in the midst of the markegt downturn.
Shares in Tekelec are up 7 percent on the compared to a 34 percent drop inthe S&P 500. They were down 8 to $12.75, in afternoon trading Thursday.