Gun manufacturer Colt Defense LLC has struck an 11th-hour deal with Morgan Stanley that removes the immediate threat of default and allows the company to make a November payment to its bondholders.

The company said Tuesday that a Morgan Stanley affiliate will lend it $70 million—a senior term loan maturing in 2018. With the injection of cash, Colt said it is able to make a $10.9 million bond payment, which was due Monday. Proceeds from the new Morgan Stanley loan will also pay off the company’s existing $50 million term loan.

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