Crocs Amends Credit Facility

Crocs Inc. said that on October 14, it amended its bank line with PNC Bank. The amendment decreases Crocs' minimum tangible net worth requirement from $266 million to $205 million, measured at the end of each fiscal quarter, commencing with the fiscal quarter ending Dec. 31, 2009. 

 

In September, Crocs issued a released confirming that it has secured a new asset-backed credit facility with PNC, which provides for up to $30 million in revolving loans to be used for working capital need and other items.

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Crocs Amends Credit Facility

Crocs Inc. said that on October 14, it amended its bank line with PNC Bank. The amendment decreases Crocs' minimum tangible net worth requirement from $266 million to $205 million, measured at the end of each fiscal quarter, commencing with the fiscal quarter ending December 31, 2009. 

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sportsonesource.com | 917.375.4699

Crocs Amends Credit Facility

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.


 

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sportsonesource.com | 917.375.4699

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