Teletouch Communications announced it entered into a new, two-year, $6 million senior secured asset-based revolving credit facility and a short term loan facility of up to $2 million per loan for special order inventory purchase transactions (together the DCP Credit Facility) with DCP Teletouch Lender, a special purpose entity created by NY-based, Downtown Capital Partners.

Teletouch said it is using the initial funds drawn from the facility to replace and pay-down its original loans and indebtedness with Thermo Credit. NYC-based Bryant Park Capital acted as exclusive financial advisor to Teletouch for the transaction.

Although the process has been extremely challenging, the new $6 million asset-based revolving loan facility, combined with the potential of the additional $2 million-per-transaction stand-by term loan facility, positions the company well to take advantage of the various components of its emerging wholesale distribution business, said T.A. Hyde, Jr., CEO and director of Teletouch.

As previously reported, Teletouch said the Thermo Facility was originally set to mature in January 2013. However, at the start of 2012, Thermo Credit informed the company that it was not in compliance with its own borrowing base facility with Capital One Bank and could no longer lend additional monies or fulfill any further revolving credit obligations to the company.