Orbit International Secured Financing and Equity Capital
The company closed a $6 million credit facility and completed a $4 million private placement of common stock.
Updated on Oct. 2, 2026 in Corporate Finance
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Orbit International has finalized a new $6,000,000 revolving line of credit with Merchant Financial Corporation and completed a $4,075,000 private placement of common stock. The moves provide the firm with necessary capital to address previous debt and support working operations.
Why it matters
Securing this combined financing allows the firm to clear its existing balance with M&T Bank while providing liquidity for litigation and growth initiatives. The private placement specifically bolsters the balance sheet through the sale of 1,630,000 common shares.
The company issued 1,630,000 common shares at $2.50 per share to raise $4,075,000. Additionally, it drew $4,539,000 from its new $6,000,000 credit line to satisfy an outstanding balance.
The players
Orbit International
This company is a manufacturer that operates production facilities in Hauppauge, NY and Carson, CA.
Merchant Financial Corporation
This financial institution acted as the provider for the company's new $6,000,000 revolving credit facility.
Elkhorn Partners L.P.
This investment firm served as the lead investor for the company's private placement of common stock.
The details
Led by Elkhorn Partners L.P., the private equity placement adds significant cash reserves for Orbit International. The firm manages production operations at facilities located in Hauppauge, NY and Carson, CA.
Timeline
Orbit International closed both its credit facility and equity transactions on October 2, 2026.
Market Landscape
This move reflects a broader trend of mid-sized manufacturers leveraging private equity to bridge liquidity gaps during periods of legal or operational transition. It positions the firm to stabilize its debt profile while competing for resources in a tight capital market.
For investors and clients, this financing arrangement represents an effort by the company to improve its solvency and operational stability. It reduces the firm's immediate financial pressure by clearing high-interest debt with M&T Bank.
The takeaway
Companies often utilize a combination of debt and equity to reset their balance sheets during complex transitions. Investors should monitor how the company allocates the remaining proceeds from the private placement toward future growth.
Further reading
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