Blonder tongue laboratories, inc. enters into loan and security agreement

On october 25, 2019, blonder tongue laboratories, inc. (the company or borrower), r. l. drake holdings, llc, a wholly-owned subsidiary of the company (r. l. drake), blonder tongue far east, llc, a wholly-owned subsidiary of the company (blonder tongue far east) and midcap business credit llc (as lender, midcap) entered into a loan and security agreement (all assets) (the loan agreement). the loan agreement provides the company with a credit facility comprising a $5,000,000 revolving line of credit. the credit facility matures following the third anniversary of the loan agreement. interest on the amounts outstanding under the loan agreement is variable, based upon the three-month libor rate plus a margin of 4.75%, subject to re-set each month. all outstanding indebtedness under the loan agreement is secured by all of the assets of the company and its subsidiaries, and is guaranteed by r. l. drake and blonder tongue far east. the company expects to use the proceeds received under the loan agreement for working capital and general corporate purposes in the ordinary course of its business.
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