Jaclyn, Inc. announced that it has entered into an amendment and extension of its credit facility with TD Bank, N.A. The term of the credit facility has been extended until November 30, 2012 and continues to provide for short-term loans and the issuance of letters of credit in an aggregate amount not to exceed $50 million.
Based on a borrowing formula, the company may borrow up to $30 million in short-term loans and up to $50 million including letters of credit. The borrowing formula allows for an additional amount of letters of credit to be issued during the company's peak borrowing season from March through October. The company's non-real estate assets are pledged to the bank as collateral. The line of credit requires that the company maintain a minimum tangible net worth and interest coverage, and imposes a debt-to-equity requirement, in each case measured annually.
Borrowings under the credit facility will now bear interest based on, at the company's option: (a) TD Bank's Base Rate with a minimum interest rate of 3.25%, or (b) a floating LIBOR rate, or a fixed LIBOR rate for interest periods of 1, 2 or 3 months, with a minimum LIBOR rate of 0.50%, plus 250 basis points.
Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's sleepwear, infants' and children's apparel, handbags, premiums and related accessories.
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