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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) March 27, 1997
ENVIRONMENTAL TECTONICS CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 1-10655 23-1714256
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Ident. No.)
County Line Industrial Park, Southampton, Pennsylvania 18966
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 355-9100
N/A
(Former name or former address, if changed since last report.)
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Item 5. Other Events.
The press release of Environmental Tectonics Corporation
dated April 7, 1997 is attached hereto as Exhibit 99 and is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(a) Exhibits.
The following exhibits are filed herewith:
99 Press Release, dated April 7, 1997, of
Environmental Tectonics Corporation.
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SIGNATURES
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.
ENVIRONMENTAL TECTONICS CORPORATION
Dated: April 10, 1997
By /s/ Duane Deaner
Duane Deaner
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Number
99 Press Release, dated April 7, 1997,
of Environmental Tectonics Corporation
EXHIBIT 99
ETC INKS $16.5 MILLION FINANCIAL PACKAGE
SOUTHAMPTON, PA.; April 7, 1997 - ENVIRONMENTAL TECTONICS
CORPORATION (AMEX:ETC) announced today that it has concluded a
major recapitalization arrangement with the First Union National
Bank of Philadelphia and Tandem Capital Corporation, a subsidiary
of Sirrom Capital Corporation (NASDAQ:SROM), of Nashville, TN.
The transaction includes a revolving senior line of credit of $10
million provided by First Union, and $4.0 millon of 12%
subordinated debentures with warrants and $2.5 million of
convertible preferred stock provided by Tandem. On a fully
diluted basis, the warrants are exercisable for 5% of the common
stock of the Company. The convertible preferred stock carries a
conversion price of between $6 and $7.50 per share of common
stock, depending on certain specified events. Both the warrant
and the preferred stock contain customary antidilution
provisions. This new capital has enabled ETC to refinance its
existing debt at more attractive interest rates and terms, and
will provide funding for the Company's aggressive growth plans.
The entire transaction was arranged by Berwind Financial Group of
Philadelphia, PA, who acted as ETC's exclusive agent and
financial advisor throughout the extensive process.
According to William F. Mitchell, ETC's President and CEO, "This
is a landmark event for ETC, coming at a significant stage of our
growth, and it could not have happened at a better time. First,
it will enable us to immediately expand our marketing efforts,
both in the U.S. and abroad, which will certainly increase our
business opportunities. Second, it will accelerate the growth of
our already strong technological base by making adequate funding
readily available. Third, it provides the solid financial base
needed to support increased sales. Also, we can now continue
with planned enhancements to our operations. We have seen
consistent improvement over the last seven quarters, and our
backlog remains strong. This new capital is the jump-start we've
needed to move on to a new plateau."
ETC designs, manufactures, and installs aircrew training systems,
sterilizer equipment, hyperbaric systems, environmental testing
and simulation systems, and related products for domestic and
international customers. ETC is listed on the AMEX under the
stock symbol "ETC."
Contact: Mike Mulshine ETC - Internet Home Page:
VOICE: 908-528-8585 http://www.ETCusa.com
FAX: 908-223-9803
E-MAIL: [email protected]
