[SatNews] Astrotech Corporation paid off one loan and has taken on new financial responsibilities in the process. (Nasdaq:ASTC) (the "Company"), a leading provider of commercial aerospace services, today announced that Astrotech Space Operations, Inc. ("ASO"), its wholly-owned subsidiary, entered into a loan agreement on October 21, 2010 with American Bank, N.A. that allows ASO to borrow up to $10.0 million. The proceeds will be used to pay off existing commercial debt and fund future working capital needs.

The loan agreement includes a $7.0 million term loan and a $3.0 million revolving credit facility, both at floating rates of bank prime plus 0.25 percent (with a 4.00 percent floor). ASO is required to make monthly principal and interest payments on the term loan, with the remaining principal due on October 21, 2015. The revolving credit facility is payable to ASO in multiple advances not to exceed $3.0 million, based on eligible accounts receivable, and expires on October 21, 2012. No funds have been drawn on the revolving credit facility to date.

Additionally, the Company announced that it has paid off the $5.1 million of its senior convertible notes which matured on October 15, 2010.