USA Inc. closed on a new $250 million, four-year secured credit
facility and said it still continues to believe it will break even for
the first half of the year and return to profitability in the second

Earlier this year, the company made plans to aggressively cut
inventory and expenses by the middle of the year, saying it expected
margins to be hurt by reduced prices initiated amid the deteriorating
retail market.

“While the extremely weak global retail environment remains a factor
in our performance as retailers slowed their orders, we had a good
reception to our product at FFANY in June, and we continued to
liquidate excess inventory and clean up our balance sheet in the second
quarter,” said David Weinberg, chief operating officer of Skechers. “As
we begin the third quarter with our key accounts reviewing Spring 2010,
we have an extremely strong balance sheet, strong liquidity, and a
significant cash position in excess of $5 per share. We are in a great
position to further grow our business around the world, and are looking
forward to capitalizing on opportunities as they arise.”

Wells Fargo Foothill, part of Wells Fargo & Company and Bank of
America N.A., a subsidiary of Bank of America Corporation, were co-lead
arrangers for the new $250 million facility. Additional participants in
the transaction, which was oversubscribed, were CIT Bank, U.S. Bank
National Association, HSBC Business Credit (USA) Inc., PNC Bank, N.A.,
Union Bank, N.A. and Capital One Leverage Finance Corporation.

“We were able to secure a new facility in these difficult times
because of our strong financial position, operating history and place
in the global market,” said Fred Schneider, the company's chief
financial officer. “In addition to this new bank facility, the
remaining $95 million of auction rate securities were redeemed, giving
us approximately $250 million in cash and investments, which should
provide us with sufficient capital for our initiatives and to fund our
growth over the next four years.”