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
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(Exact Name of Registrant as specified in charter)
Delaware 1-12727 96-11-3349733
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1881 Lakeland Avenue, Ronkonkoma, New York 11779
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(Address of principal executive offices) (Zip Code)
631/ 739-2100
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Registrant's telephone number, including area code
N/A
[GRAPHIC OMITED]
(Former name or former address, if changed since last report.)
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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
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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.
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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.
Sentry Technology Corporation
By: /s/ Peter J. Mundy Date: December 19, 2006
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Peter J. Mundy
Vice President and Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number Description
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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.