Gerber Scientific amends credit agreement

Gerber Scientific Inc., which makes equipment used for producing signs, specialty graphics, apparel and optical lenses, said Thursday it amended a credit agreement to give it more flexibility.

The company said it agreed to a one-year reduction in the term of the deal and requested a reduction in the size of the loan to $100 million from $125 million in order to minimize the commitment fees on unneeded borrowing capacity.

The amendment includes an increase in the interest rates and commitment fees.

Gerber expects financing costs between $1.3 million and $1.7 million, which will be capitalized and amortized over the rest of the agreement through Jan. 31, 2012.

Shares of Gerber plunged 64 cents, or 24.2 percent, to $2.01 in afternoon trading after the company also posted a loss for its fiscal third quarter. The stock has traded between $1.79 and $12.64 over the past 52 weeks.