Orbit International Secured $10M in New Capital
The manufacturer cleared past debt and issued equity to fuel working capital and potential growth.
Updated on Oct. 2, 2026 in Corporate Finance
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Orbit International has closed a $6,000,000 revolving line of credit with Merchant Financial Corporation and a $4,075,000 private placement of common stock. These moves provide the firm with immediate liquidity for operations and debt restructuring.
Why it matters
The capital injection allows the company to resolve legacy liabilities while providing a cushion for litigation costs and working capital. For operators, this highlights the necessity of balancing high-cost bank debt with structured equity raises when liquidity needs outpace internal cash flow.
The company drew $4,539,000 from the new $6,000,000 facility to retire a previous M&T Bank balance. Additionally, it issued 1,630,000 common shares at $2.50 per share to raise $4,075,000.
The players
Orbit International
A manufacturing firm operating production facilities in New York and California.
Merchant Financial Corporation
A financial institution providing credit facility services to mid-market companies.
Elkhorn Partners L.P.
An investment firm that led the recent private placement of common stock.
The details
Orbit International utilized the Merchant Financial Corporation credit line to replace its existing banking arrangement. Simultaneously, the private placement led by Elkhorn Partners L.P. provides a fresh infusion of equity. The company intends to allocate these proceeds toward litigation expenses and general working capital, while keeping open the possibility of funding new growth opportunities across its Hauppauge, NY and Carson, CA facilities.
Timeline
October 2, 2026: Orbit International closed its credit and equity transactions.
Market Landscape
This move marks a departure from traditional bank-led financing as the company shifts toward a mix of private credit and equity capital. It aligns with a broader trend of manufacturers seeking more flexible capital structures to navigate litigation and operational costs.
Operators should monitor their own debt-to-equity ratios when facing high litigation or operational costs. Evaluate whether current banking terms are limiting growth or if a move toward private placement can offer necessary flexibility.
The takeaway
Securing diverse financing sources can provide a buffer against sudden cash demands and legal liabilities. Executives should assess if their current credit facilities are hindering agility and consider if equity-based solutions provide better leverage for growth.
Further reading
For more on how mid-market firms navigate capital structure shifts, visit the Corporate Finance section.
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