Phoenix Footwear Group, Inc. entered into a new $17 million revolving credit facility with Wells Fargo Bank. The facility replaces the company's previous facility with Manufacturers and Traders Trust Company which has been retired. The new facility, which is expandable to $20 million with the consent of the lender, has $8.3 million in borrowings, net of cash, outstanding as of June 16, 2008.


 

The new credit facility provides for interest at prime minus 0.25% or, LIBOR plus 2.4%, for an effective interest rate of 4.75% based upon today's rates.

 

“We are very pleased with the improved terms of our new credit facility, which reflects our continued balance sheet improvements and provides additional flexibility to further grow our brands,” said Cathy Taylor, Phoenix Footwear's chief executive officer. “It is gratifying that a well-regarded bank like Wells Fargo, with its strong retail and apparel industry depth, has shown confidence in our business during the current period of credit uneasiness. This credit facility puts our company in a stronger position to continue to pursue our strategic goals and build value for our shareholders.”