Hauppauge defense contractor gets $72.5M credit line

Hauppauge-based Globecomm Systems Inc. has obtained a new $72.5 million secured credit line to raise money for bid bonds and performance bonds as it seeks "projects and contracts worldwide," the defense and industrial communications contractor said Wednesday.

Globecomm has set up the $72.5 million credit facility with Citibank, replacing a $65 million line with the same bank.

A component of the agreement, in the form of a revolving line of credit, will be used for working capital, the company said.

The agreement expires Oct. 31, 2014. It  includes up to $50 million in term loans, a $15 million revolving credit line, $10 million in commercial letters of credit and $30 million in standby letters of credit.

Globecomm rolled into the new term loan agreement a $26.3 million balance from its previous, $40 million Citibank term loan.  "The increased term loan capacity is intended to accommodate the company’s continued growth," Globecomm said.

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