Talon International Announces New $8.5 Million Credit Facility With Union Bank
Debt Refinancing Sets Stage for Growth
LOS ANGELES, CA--(Marketwired - January 07, 2014) - Talon International, Inc. (OTCQB: TALN), a leading global supplier of custom zippers and apparel accessories, today announced that it finalized a new $8.5 million credit facility agreement with Union Bank, N.A. on December 31, 2013, consisting of a $5.0 million term loan and a $3.5 million revolving credit facility.
Talon immediately used proceeds from the term loan and $1.0 million of the revolving credit facility to repay in full the company's $5.8 million of indebtedness to CVC California, LLC that was scheduled to mature on January 12, 2014. Amounts outstanding under the revolving credit facility mature in two years and the term loan is a fully amortized loan payable monthly over three years. Outstanding amounts bear interest at favorable market rates and the credit facility is secured by substantially all of Talon assets.
"We are delighted to obtain this new credit facility from Union Bank, and particularly on attractive terms," said Lonnie Schnell, Talon's Chief Executive Officer. "Refinancing the promissory note from our former preferred stockholder is the final step in our July 2013 redemption of all of our preferred shares and is an important milestone in our multi-year effort to strengthen Talon's capital structure." In addition to refinancing the promissory note, the credit agreement provides Talon access to additional working capital to fund strategic growth initiatives.
"Our presence in the U.S., Europe and Southeast Asia is a significant competitive advantage that positions Talon to serve leading retailers and apparel manufacturers worldwide. Improved access to working capital will enable us to leverage this advantage by continuing to invest in sales, marketing and new product development initiatives to expand and strengthen our market position. With our improved financial st
Agree 100%. Having so many top managers purchase shares around 8$ is a very encouraging sign. Next few weeks and months will say if they were right, but for such a small company, they must believe the stock offers incredible value here.