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ORBT > SEC Filings for ORBT > Form 8-K on 13-Nov-2012All Recent SEC Filings

Show all filings for ORBIT INTERNATIONAL CORP

Form 8-K for ORBIT INTERNATIONAL CORP


13-Nov-2012

Entry into a Material Definitive Agreement, Termination of a Material De


Item 1.01 Entry into a Material Definitive Agreement.

On November 8, 2012, Orbit International Corp. and its subsidiaries, Behlman Electronics, Inc., Tulip Development Laboratory, Inc. and Integrated Consulting Services, Inc. d/b/a Integrated Combat Systems (collectively, the "Borrowers") entered into a Credit Agreement (the "Credit Agreement") with People's United Bank (the "Bank") pursuant to which the Borrowers established a committed line of credit of up to $6,000,000 (the "Line of Credit"). This Line of Credit was used to pay off in full the Borrowers' obligations to Capital One, N.A. pursuant to a prior credit facility and to provide for the Borrowers' general working capital needs.

The Line of Credit matures on November 8, 2013 and may be renewed on an annual basis. Payment of interest on the Line of Credit is due at a rate per annum as follows: (1) variable at the Bank's prime lending rate plus 0%; and/or (2) 2% over LIBOR for 30, 60 or 90 day LIBOR maturities. The Line of Credit is secured by a first priority security interest in all tangible and intangible assets of the Borrowers located in the United States and Canada.

The Credit Agreement contains customary affirmative and negative covenants and certain financial covenants. Additionally, available borrowing under the Line of Credit is subject to a borrowing base of eligible accounts receivable and inventory. All outstanding borrowings under the Line of Credit are accelerated and become immediately due and payable (and the Line of Credit terminates) in the event of a default, as defined, under the Credit Agreement.

The discussion in this Item 1.01 regarding the Line of Credit is qualified in its entirety by the Credit Agreement, the Line of Credit Note and the Security Agreement attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively.



Item 1.02 Termination of a Material Definitive Agreement.

In connection with entering into the Credit Agreement described under Item 1.01 of this Current Report on Form 8-K, the existing credit agreement for a line of credit of up to $3,000,000 and term loan dated as of March 10, 2009 among the Borrowers and Capital One, N.A. (the "Prior Credit Agreement"), previously described in the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 16, 2010, was terminated as of November 8, 2012. There was no penalty associated with the termination of the Prior Credit Agreement.



Item 2.03 Creation Of A Direct Financial Obligation Or An Obligation Under An Off-Balance Sheet Arrangement Of A Registrant.

The information set forth in Item 1.01 of this report on Form 8-K is hereby incorporated by reference into this Item 2.03 in its entirety.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Description
10.1 Credit Agreement, dated as of November 8, 2012, by and among Orbit International Corp., Behlman Electronics, Inc., Tulip Development Laboratory, Inc., Integrated Consulting Services, Inc. d/b/a Integrated Combat Systems and People's United Bank
10.2 Line of Credit Note, dated as of November 8, 2012, payable by Orbit International Corp., Behlman Electronics, Inc., Tulip Development Laboratory, Inc. and Integrated Consulting Services, Inc. d/b/a Integrated Combat Systems to the order of People's United Bank
10.3 Security Agreement, dated as of November 8, 2012, by and among Orbit International Corp., Behlman Electronics, Inc., Tulip Development Laboratory, Inc., Integrated Consulting Services, Inc. d/b/a Integrated Combat Systems and People's United Bank


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