Shoe Carnival Inc. announced it has exercised the accordion feature of its credit agreement with Wells Fargo Bank, N.A. and Fifth Third Bank, National Association to further enhance its financial liquidity position.
The exercise, which closed on April 16, 2020, resulted in an increase of the company’s line of credit from $50 million to $100 million. The company currently has no cash borrowings under the facility.
“As we have communicated, our strong financial position has been a key competitive advantage for us through various cycles. However, out of an abundance of caution in light of the prolonged uncertainty in the macro-economic environment driven by the COVID-19 pandemic, we expanded our line of credit to ensure greater flexibility as we navigate current market conditions. We would like to thank Wells Fargo and Fifth Third Bank for their continued support of Shoe Carnival and our business operations,” said Cliff Sifford, Shoe Carnival’s vice chairman and chief executive officer.
Photo courtesy Shoe Carnival Distribution Center