MELVILLE, N.Y., Oct. 28, 2010 (GLOBE NEWSWIRE) -- P&F Industries, Inc. (Nasdaq:PFIN) announced today that it has entered into a new $22 million senior secured revolving credit facility and term loan facility with Capital One Leverage Finance Corporation effective October 25, 2010. The new credit facility replaces the credit facility with Citibank, N.A. and HSBC Bank USA, National Association. The revolving credit commitment of $15,910,000 is for three years and is supported by the Company's accounts receivable, inventory and machinery and equipment. The term facility consists of a three-year $6,090,000 term note that is supported by the real property at the Company's three facilities in Tampa, FL, Jupiter, FL and Cranberry Township, PA, amortizing over a 15-year schedule. Both the revolving credit commitment and term facility are cross collateralized. At the closing, in addition to paying off Citibank and HSBC in full, the Company paid off in full its two mortgages held by Wells Fargo Bank, N.A. (successor by merger to Wachovia Bank, National Association) and one-half of the principal outstanding and all accrued interest on the note held by the former sellers of the Company's Hy-Tech Machine, Inc. subsidiary. The Company also restructured certain obligations to its subordinated lenders, including extending the term of the underlying promissory notes to Richard A. Horowitz, Marc Schorr, and the former Hy-Tech sellers, to correspond with the three-year term of the credit facility, and agreeing to make current interest payments under such promissory notes, and in the case of the former Hy-Tech sellers and Marc Schorr, make partial principal payments during the term based on Company performance. Under the terms of the credit facility, the Company must adhere to certain affirmative, negative and reporting covenants, and is subject to certain events of default, which are customary in similar transactions.
P&F Industries, Inc. Announces New $22 Million Senior Credit Facility
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