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November 18, 2014

Colt finds lender, won't miss interest payment

Steve Laschever Colt's iconic blue onion dome at its former Hartford factory. The company has since relocated to West Hartford.

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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