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Singing Machine Secures up to $21MM in Financing From PNC Bank

June 23, 2017, 07:46 AM
Filed Under: Consumer Products

The Singing Machine Company, Inc., a provider of consumer karaoke products, announced it has renewed its agreement for senior security financing with PNC Bank. Under the renewal to its credit agreement, PNC will provide the Company with up to $15 million dollars in asset-based lending during the company's peak shipping season with an accordion feature to lend an additional $5 million, if needed.

The new credit agreement provides for another three years of financing and allows the company to borrow against eligible accounts receivable and inventory. The overall terms of the renewal are improved to include: increased $1 million to inventory borrowing, from $4 million up to $5 million, lower interest rates, more availability, better advance rates, and less reserves.

The new line also provides the Company with a $1 million dollar term loan, the proceeds of which will be used to immediately pay down $1 million in subordinated related party long-term debt.

Lionel Marquis, Company CFO commented, "We're excited to renew our partnership with PNC Bank. This new deal offers us significantly better terms and expands our access to working company so that we can continue to operate and grow our business."

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