| On October 13, 2009, the revolving credit facility with Wells Fargo Bank, National Association was terminated in accordance with the underlying agreement and concurrently, the company entered into a new $20M credit facility, based on accounts receivable and inventory, with Burdale Capital Finance, Inc. as Agent. The new credit facility provides increased financial flexibility for the company with a three year term, and the ability to borrow up to $12.5M without financial covenant restrictions, if there is adequate asset coverage. Subject to certain provisions, the facility also includes an option that can be exercised to increase the facility size up to $50M. This potential additional borrowing capacity may be beneficial to the company if inventory levels need to substantially increase as a result of product demand. :theflyonthewall.com |
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