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.