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ARCI Extends Credit Agreement With PNC Bank

April 02, 2013, 07:09 AM
Filed Under: Retail
Related: PNC Bank

Appliance Recycling Centers of America (ARCI), a leading provider of appliance retailing and recycling services, announced that the company has entered into a two-year extension of its credit agreement with PNC Bank, which includes a senior secured revolving line of credit and term loan. The extension of the credit agreement, which was signed on March 14, 2013, extends the agreement to January 24, 2016.

Under terms of the extension, ARCA may borrow an aggregate principal amount of up to $15 million under the revolving line of credit, the same amount allowed under the original three-year credit agreement signed on January 24, 2011. The Company intends to use the revolving line of credit for ongoing working capital needs and general corporate purposes.

The extension of the credit agreement waived the Company's prior events of default related to the minimum fixed charge coverage ratio and the limitation on loans to affiliates and also reset the financial covenants.

Edward R. (Jack) Cameron , president and chief executive officer, commented, "We appreciate the confidence that PNC Bank has shown in ARCA by extending its credit agreement for an additional two years. The $15 million revolving line of credit, combined with the decisive steps we are taking in 2013 to improve our operational execution and profitability, better positions us to capitalize on future growth opportunities."

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