Signature Eyewear, Inc. announced that it has entered into a 30-month
$4.8 million revolving line of credit with Comerica Bank. The facility
replaces the company's term loans with Home Loan Investment Corporation.
The line of credit bears interest at either 3.5% over LIBOR or 0.5%
over Comerica Bank's base rate, at the option of the Company, and
matures on February 28, 2010. It is secured by the Company's assets.
Borrowing availability is based on eligible accounts receivable,
inventory and a letter of credit.
The term loans with Home Loan Investment Corporation had an outstanding
balance of $3.1 million and a weighted average interest rate of
approximately 10.5% per annum at payoff.
“We are very pleased that our earnings over the past several years and
improving financial condition have enabled us to obtain this new credit
facility,” noted Michael Prince, chief executive officer and chief
financial officer of the Company. “The facility will have a positive
impact on our liquidity as it provides us greater borrowing capacity at
a lower cost and provides working capital for growth. Following the
Home Loan Investment Corporation payoff, our borrowing capacity under
the Comerica Bank facility is approximately $900,000 and the current
rate is 8.75% per annum. Unless market interest rates increase
substantially, we anticipate significant interest expense savings
during the coming fiscal year.”
“In addition,” Prince said, “the HLIC loans matured in April 2008, and
thus we were able to extend this debt maturity until February 2010.”
Signature Eyewear makes eyeglass frames and sunglasses under
internationally recognized brand names, including bebe eyes, Cutter
& Buck Eyewear, Dakota Smith, Hart Schaffner Marx, Hummer Eyegear,
Laura Ashley Eyewear, Nicole Miller Eyewear and soon to be released
Carmen Marc Valvo Eyewear.