Ultralife closes on new $20M revolving-credit facility with PNC Bank

NEWARK — Ultralife Corp. (Nasdaq: ULBI), a battery maker based in Wayne County, announced today that it has closed on a four-year, $20 million senior secured, asset-based revolving- credit facility with PNC Bank. It plans to use the money to acquire technology, develop products, and expand its market reach.

The credit facility has an “accordion” feature that gives Ultralife the option to access another $15 million in credit from PNC Bank. The company’s previous revolving-credit facility with RBS Business Capital had expired on May 15.

Ultralife said in a news release that it is not tapping the credit facility at the outset as the company is in “a positive cash position of over $10 million.” The company added that borrowings under the facility will bear interest based on LIBOR plus 200 basis points and may vary depending on Ultralife meeting certain financial criteria.

“This new credit facility demonstrates the success of our efforts over the past two years to establish a profitable business model and significantly improve our liquidity. Indicative of our strengthened financial position, we reported almost $9 million in cash and no debt as of March 31, 2013,” Michael D. Popielec, Ultralife’s president and CEO, said in a news release. “We intend to use our cash generation plus this new facility to fund the acquisitions of technologies, products and expanded market reach that will supplement our expected organic top line growth and enable us to accelerate the operating leverage benefits of our now validated business model.”

Ultralife, headquartered in the town of Newark, makes batteries, power systems, and communications and electronics equipment. The company sells to government, defense, and commercial customers across the globe. The firm generated $21 million in revenue in the first quarter, down from $27.5 million in the year-ago period.

Contact Rombel at arombel@cnybj.com