By Devika Patel
Knoxville, Tenn., April 27 - Environmental Tectonics Corp. said it has arranged a $7.5 million credit facility with H.F. Lenfest.
The company said it has already drawn $2 million under the facility but that the funds' use is restricted.
Environmental Tectonics also announced it has exchanged the $10 million subordinated note held by Lenfest, along with all interest and warrants issued under the subordinated note, and all of the series B and series C preferred shares held by Lenfest for newly created series E preferreds.
The company also says Lenfest will guarantee all of Environmental Tectonics' obligations to PNC Bank, NA in regard to a $15 million revolving line of credit.
In consideration for entering into this credit facility, Lenfest received 55 newly created series D preferred shares.
Southampton, Pa.-based company Environmental Tectonics specializes in designing, developing, installing and maintaining aircrew training systems, public entertainment systems, process simulation systems and related products for domestic and international customers.
Issuer: | Environmental Tectonics Corp.
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Issue: | Credit facility, 55 series D preferred shares
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Amount: | $7.5 million
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Warrants: | No
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Investor: | H.F. Lenfest
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Settlement date: | April 27
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Stock symbol: | Amex: ETC
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Stock price: | $0.94 at close April 24
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Market capitalization: | $6.96 million
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