January 25, 2010 (FinancialWire) — Ultralife Corp. (NASDAQ: ULBI) said it has secured a commitment from RBS Business Capital, a division of Citizens Financial Group, for a $35 million senior secured asset-based revolving credit facility.

The revolving credit facility will replace the company’s $35 million senior secured revolving credit facility with its current lenders, JPMorgan Chase Bank, N.A. (NYSE: JPM) and Manufacturers and Traders Trust Co.

On January 15, 2010, Ultralife’s current lenders provided it with a letter, which demanded payment of the outstanding revolver balance as a result of events of defaults related to failure to comply with certain covenants under the existing revolving credit facility.

Subsequently, Ultralife and the current lenders entered into a Forbearance Agreement, effective January 22, 2010, by which the current lenders agreed not to exercise their rights and remedies under the existing credit facility until February 18, 2010.

After the payment of $1.5 million concurrent with the execution of the Forbearance Agreement, the outstanding balance under the existing revolving credit facility will be $14.3 million.

Ultralife began as a battery company and now serves its markets with products and services ranging from portable and standby power solutions to communications and electronics systems.

Ultralife’s operations are in North America, Europe and Asia.

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