Current Report Filing (8-k)
August 30 2016 - 2:31PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13
or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported):
August 25, 2016
Blonder Tongue Laboratories, Inc.
(Exact Name of registrant as specified
in its charter)
Delaware
(State or other jurisdiction
of incorporation)
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1-14120
(Commission File Number)
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52-1611421
(I.R.S. Employer Identification
No.)
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One Jake Brown Road, Old Bridge, New
Jersey
08857
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number,
including area code:
(732) 679-4000
Not Applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01
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Entry into a Material Definitive Agreement
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On August 25, 2016, Blonder Tongue Laboratories, Inc. (the “Company”),
R. L. Drake Holdings, LLC, a wholly-owned subsidiary of the Company (“RLD” and with the Company, collectively, “Borrower”),
and Santander Bank, N.A. (“Santander”) entered into a Sixteenth Amendment to Revolving Credit, Term Loan and Security
Agreement (the “Sixteenth Amendment”), to amend that certain Revolving Credit, Term Loan and Security Agreement dated
August 6, 2008, as amended by the previous fifteen amendments (as amended to date including the Sixteenth Amendment, collectively,
the “Loan Agreement”).
The Sixteenth Amendment extends the termination date of the
Loan Agreement and the “Additional Availability Period” under the Loan Agreement from September 1, 2016 to December
1, 2016 and also amends certain financial terms and certain of the Company’s financial covenants. In particular, (i) the
“Revolving Interest Rate” under the Loan Agreement has increased from an amount equal to the Index (as defined in the
Loan Agreement) plus 1.75% to an amount equal to the Index plus 5.00%, (ii) the “Term Loan Rate” under the Loan Agreement
has increased from an amount equal to the Index plus 1.75% to an amount equal to the Index plus 5.00% and (iii) the maximum revolving
advance amount has been reduced from $4 million to $3.5 million. In addition, the amended covenants require the Company to achieve
EBITDA of not less than negative (-) $82,000 as of September 30, 2016 (calculated on a trailing nine month basis).
The foregoing summary of the Sixteenth Amendment is not complete
and is qualified in its entirety by reference to the full text of the Sixteenth Amendment, which is attached hereto as Exhibit
10.1 and incorporated herein by reference.
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Item 2.03
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Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant
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The information contained in Item 1.01 above is hereby incorporated
by reference into this Item 2.03. Upon a default under the Loan Agreement, including the non-payment of principal or interest,
the obligations of the Company under the Loan Agreement may be accelerated and Santander may pursue its rights under the Uniform
Commercial Code and any other applicable law or in equity.
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits. The following exhibit is filed herewith:
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10.1
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Sixteenth Amendment to Revolving Credit, Term Loan and Security
Agreement, dated August 25, 2016, between Santander Bank, N.A. and Blonder Tongue Laboratories, Inc. and R. L. Drake Holdings,
LLC.
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SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BLONDER TONGUE LABORATORIES, INC.
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By:
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/s/ Eric Skolnik
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Eric Skolnik
Senior Vice President and Chief Financial Officer
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Date: August 30, 2016
EXHIBIT INDEX
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10.1
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Sixteenth Amendment to Revolving Credit, Term Loan and Security
Agreement, dated August 25, 2016, between Santander Bank, N.A. and Blonder Tongue Laboratories, Inc. and R. L. Drake Holdings,
LLC.
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