8-K 1 skvy8-k12192006.txt SENTRY 8-K TRADITION CAPITAL BANK FOR 12-19-2006 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): December 19, 2006 (December 15, 2006) SENTRY TECHNOLOGY CORPORATION ------------------------------ (Exact Name of Registrant as specified in charter) Delaware 1-12727 96-11-3349733 ----------------- ------------ ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1881 Lakeland Avenue, Ronkonkoma, New York 11779 -------------------------------------------------- --------- (Address of principal executive offices) (Zip Code) 631/ 739-2100 ------------------------ Registrant's telephone number, including area code N/A [GRAPHIC OMITED] (Former name or former address, if changed since last report.) [GRAPHIC OMITED] INFORMATION TO BE INCLUDED IN THIS REPORT Item 2.03 - Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On December 15, 2006 Sentry Technology Corporation (the "Company") entered into a new secured revolving credit agreement (the "Credit Agreement") with Tradition Capital Bank for $550,000 dollars (the "Loan"). The Loan is secured by the Company's assets, in a second position to Royal Bank of Canada, as well as by pledges of assets from Peter L. Murdoch, the Company's President and CEO, and Robert D. Furst, a director of the Company. Mr. Murdoch and Mr. Furst have also provided personal guarantees for the Loan. Interest under the Loan is payable at prime plus 1.00%. The Loan is due and payable on June 15, 2007, or upon demand of the Lender, or upon the occurrence of events of default as more fully set forth in the Credit Agreement included with this report as Exhibit 10.1. The Company made customary representations, warranties and covenants to Tradition Capital Bank, and agreed to indemnify Tradition Capital Bank against potential losses incurred in connection with the Loan. The Credit Agreement has been attached to this report to provide investors with information regarding its terms. It is not intended to provide any other factual information about the Company. Item 8.01 Other Events On December 18, 2006, we issued a press release announcing our entry into the transactions contemplated by the Loan. The press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. Item 9.01 - Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description ------ ----------- 10.1 Revolving Credit Agreement between Tradition Capital Bank and Sentry Technology Corporation, dated December 15, 2006. 99.1 Press Release, dated December 18, 2006, issued by Sentry Technology Corporation. [GRAPHIC OMITED] 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. Sentry Technology Corporation By: /s/ Peter J. Mundy Date: December 19, 2006 ------------------------------------------- Peter J. Mundy Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description ------ ----------- 10.1 Revolving Credit Agreement between Tradition Capital Bank and Sentry Technology Corporation, dated December 15, 2006. 99.1 Press Release, dated December 18, 2006, issued by Sentry Technology Corporation.