Crocs Inc. said that on December 19, it entered into a seventh amendment of its Revolving Credit Facility with Union Bank of California, N.A. According to a filing with the Securities & Exchange Commission, the seventh amendment modifies the Revolving Credit Facility by extending the maturity date to February 16, 2009. As part of the amendment, the footwear maker pledged to the bank substantially all of the company's intellectual property.
The seventh amendment, among other things, limits borrowings to $22.4 million, modifies the interest rate on the loan to 9% above the bank's reference rate and requires the Company to perform certain covenants and pay certain fees.
In connection with the seventh amendment, the company entered into an Intellectual Property Security Agreement ('the IP Security Agreement”) in favor of the bank. Pursuant to the IP Security Agreement, the company pledged to the bank substantially all of the company's intellectual property. The IP Security Agreement specifies that the collateral includes all after-acquired assets, damage claims, license fees, royalties and all proceeds and products generated from these assets.
