Trans-Lux entered into a three-year credit agreement with SCM Specialty Finance Opportunities Fund. Trans-Lux can borrow up to an aggregate of $4 million, which includes up to $3 million of a revolving loan and a $1 million term loan.

Trans-Lux also announced that the Pension Benefits Guaranty Corporation has elected to not refile a general lien against the company’s assets. The liens have been in effect for over three years.

J.M. Allain, president and CEO of Trans-Lux said, “The announcements we are making today show a clear new confidence in our financials and our future. The PBGC decision and the financing facility, in particular, come after an exhaustive review of our business and our forecast. We are pleased that we see concrete fruits of our labor relating to the comprehensive restructuring we began some time ago.”

A portion of the proceeds from the revolving loan was used to make an additional $300,000 contribution to the company’s pension plan. The majority of the funds under the revolving loan will be used as working capital, the term loan will be used to purchase new manufacturing equipment to support display production.

“The new equipment, to be located at our new facility in Hazelwood, MO, will be integral to creating a unique production facility capable of manufacturing top quality products with lead times unequaled in the marketplace,” concluded Allain.

Trans-Lux is a designer and manufacturer of TL Vision digital video displays and TL Energy LED lighting solutions for the financial, sports and entertainment, gaming, education, government and commercial markets.