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Staving off liquidity concerns, at least for the immediate future, Crocs Inc. announced that it signed a new asset-backed credit facility with PNC Bank, a subsidiary of the PNC Financial Services Group.
The agreement, which matures on Sept. 25, 2012, provides for as much as $30 million in revolving loans, according to a filing with the Securities and Exchange Commission. In addition, the loan’s financial covenants include the maintenance of a tangible net worth greater than $266 million at the end of each fiscal quarter, a limitation to capital expenditures of certain values during the course of the loan.
“This new asset-backed credit facility provides us with additional liquidity and flexibility as we continue to invest in our strategic initiatives and facilitate the company’s turnaround,” Crocs CFO Russ Hammer said in a statement.
Concerns around the company’s liquidity were rampant in July after a story in the Washington Post suggested that the company’s collapse could be imminent and that Crocs would be unable to pay down debt due in September.
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