R.G. Barry Corporation has announced that it has entered into a factoring and financing agreement with The CIT Group/Commercial Services (CIT). Under the credit facility, CIT may advance loans and arrange for the issuance of letters of credit in an aggregate amount up to US$35 million, subject to a borrowing base formula. The agreement is for a stated term of three years.
From this credit facility the company will retire all indebtedness to its current lending bank and to an institutional lender.
To secure the financing, R.G. Barry is granting to CIT a security interest and pledge in substantially all of its assets, including a mortgage on all of its real estate. The company's current bank facility, which will be retired, is also secured by substantially all of the assets.
The CIT agreement permits R.G. Barry to convert its factoring arrangement to an asset-based revolving loan on mutually-agreed terms.
