West Hartford gun manufacturer Colt Defense said it has secured a new $70 million loan that will prevent the company from missing a $10.9 million interest payment due this week.
The company warned last week that, due to declining sales, and cash flow, it needed a loan or an amendment to its existing agreements to make the debt payment.
The new senior secured term loan facility with Morgan Stanley Senior Funding, which carries interest of 8 percent on a cash basis and 2 percent on an in-kind basis, allows Colt to repay all outstanding amounts under the manufacturer’s July 2013 term loan agreement.
It also provides additional liquidity, Colt said.
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