Zumiez has entered into a secured credit agreement with Wells Fargo HSBC Trade Bank, N.A., according to an 8-K form filed with the SEC.

The credit agreement provides Zumiez with a senior revolving credit facility through Sept. 1, 2011 of up to $25.0 million. This new facility replaces the company's $25.0 million secured revolving credit facility with Wells Fargo, which was scheduled to terminate on Aug. 30, 2009.

Amounts outstanding under the new credit facility will bear interest either at a fluctuating rate per annum equal to 1% above the Daily One Month LIBOR Rate (as defined in the Revolving Line of Credit Note) or at a fixed rate of 1% above LIBOR in effect on the first day of an applicable fixed rate term. The company's obligations under the new facility are secured by a first priority lien in the company's accounts receivable, general intangibles, inventory, equipment and fixtures. Zumiez must also provide financial information and statements to Wells Fargo.

The new facility contains financial covenants that require Zumiez to meet a certain quick ratio at the end of each fiscal quarter and to not exceed a specified net loss after taxes threshold on a trailing four-quarter basis. The new facility also contains certain negative covenants that generally limit the company's ability to, among other things, incur additional indebtedness or enter into certain transactions.