On November 3, 2026, TechPrecision Corporation, together with its wholly owned subsidiaries Ranor, Inc. and STADCO, entered into a financing agreement with Rosenthal & Rosenthal, Inc. The agreement provides a total credit facility of $10 million, consisting of a $5 million revolving secured line of credit, a $1.5 million three-year term loan, and a $3.5 million five-year term loan. All term loans were funded in full on the closing date.
The proceeds from the new facility were used to pay off and terminate the Company’s prior credit facility with Beacon Bank & Trust, which had an outstanding balance of approximately $5.8 million. The Company also incurred closing costs of approximately $0.6 million and issued 25,000 shares of common stock to the broker that facilitated the deal.
Under the terms of the agreement, the revolving line of credit is subject to a borrowing base based on eligible accounts receivable and work-in-progress contracts. Interest rates are tied to the JPMorgan Chase Bank N.A. prime rate, with the Prime Rate floor set at 4.00% per annum. The three-year term loan is to be repaid in monthly installments of $41,666.66 plus interest, while the five-year term loan requires monthly payments of $58,333.33 plus interest. Both term loans bear an interest rate of 2.00% above the Prime Rate.
The Credit Agreement includes financial covenants requiring the Borrowers to maintain a minimum quarterly tangible net worth of not less than $5.5 million and to provide annual audited financial statements. The facility is secured by a security interest in substantially all personal property of the Borrowers and a first mortgage on Ranor’s facility in Westminster, Massachusetts.
