Blonder Tongue Laboratories entered into an $8.5 million financing transaction with Sterling National Bank, maturing in December 2019.

The new credit facility consists of a $5 million asset-based revolving line of credit and a $3.5 million amortizing term loan. A portion of the proceeds of the new credit facility has been used to repay all amounts outstanding under the company’s existing credit facility, which has been terminated. That credit facility was scheduled to expire December 31, 2016.

The revolving loan and term loan facilities are variable interest rate loans, based upon the 30-day LIBOR rate (currently 0.76%), plus a margin of 4.00% with respect to the revolving loan and 4.50% with respect to the term loan. This pricing represents a 3.99% reduction in our cost of funds per annum, with respect to the revolving loan and a 3.49% reduction in our cost of funds per annum, with respect to the term loan.

The term loan will amortize at the rate of $19,444 per month, maturing on December 28, 2019. All outstanding indebtedness under the new credit facility is secured by all of the assets of the company and its subsidiaries, and is guaranteed by Blonder Tongue Far East, a wholly-owned subsidiary of the company.

Eric S. Skolnik, Blonder Tongue CFO, commented, “We are very pleased with the terms that Sterling has made available to us under the new facility. They understand our business and are providing us with increased availability and more flexible funding options compared to our prior lender. As a result, we expect the Sterling facility to improve our liquidity and provide us with greater working capital to fund current and future operations.”

“Sterling National Bank is happy to be partnering with Blonder Tongue as they continue to grow and thrive. We look forward to working with the top-notch management team for many years to come,” Michael Haddad, president of Sterling’s Asset-Based Lending division, said.

Blonder Tongue Laboratories provides system operators and integrators serving the cable, broadcast, satellite, IPTV, institutional and professional video markets with comprehensive solutions for the provision of content contribution, distribution and video delivery to homes and businesses.