ValueVision boosts credit facility by $25 Million
Retail Editor 5 -- Home Textiles Today, February 5, 2014
Minneapolis - Multi-channel retailer ValueVision Media Inc., which operates as ShopHQ, has increased the size of its credit facility with PNC Bank, National Association to $75 million from $50 million.
The 50% expansion consists of a $10 million increase to the company's current revolving credit facility to $60 million from $50 million and provides conditions for a $15 million term loan on which ValueVision may draw to support the potential expansion of its Bowling Green, Ky.-based distribution center.
The credit facility's maturity date is unchanged at May 1, 2018. The credit facility continues to be secured by ValueVision Media's and its subsidiaries' accounts receivable, inventory, real estate and other assets.
"The $25 million expansion of our credit facility substantially improves our liquidity and better positions us to support future growth," noted Bill McGrath, cfo.
He cited ValueVision's strengthening performance through the first nine-months of fiscal year 2013, including a 24% year-over-year increase in shipped unit volume, shifts in the product mix and reductions in average selling price. The moves have helped Value Vision increase its rolling 12-month customer count by 13% to 1.25 million as of Nov. 2, 2013, he said.
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