Ironclad Performance Wear Secures $6 Million Credit Line to Fund Growth
Multi-Year Agreement Increases Working Capital Availability and Reduces
LOS ANGELES, Dec. 11, 2012
LOS ANGELES, Dec. 11, 2012 /PRNewswire/ --Ironclad Performance Wear
Corporation (ICPW.OB), the recognized leader in high-performance task-specific
performance work gloves, has entered into a new commercial banking
relationship with Union Bank of California which increases the company's
access to working capital and reduces borrowing costs.
Under the terms of this new agreement, Ironclad has total borrowing capacity
of up to $6 million, with the first $3.5 million in unrestricted funds and
borrowings above this amount subject to a borrowing base. The new credit line
matures on November 30, 2014 and allows the Company to fix varying amounts of
debt at an interest rate of LIBOR plus 2% and carry the balance at the bank's
reference rate minus 0.25%. This funding replaces a $3 million receivables
factoring agreement with another party which Ironclad used over the past three
years until its recent expiration.
Ironclad will deploy this new line as-needed to help fund anticipated growth
in 2013 and 2014, including its plans for international expansion.
"This new banking relationship, which also includes traditional commercial
banking activities, will result in an annual savings of about $125,000," said
Thomas Kreig, Ironclad's Senior Vice President of Finance. "Our continued
success and strengthened financial position enabled us to secure more
favorable financing terms and pursue a competitive selection process. By
selecting Union Bank, we have established a close working relationship with a
trusted and reliable institution that we believe will meet our banking needs
at attractive terms over the next several years."
About Ironclad Performance Wear Corporation
Ironclad Performance Wear is an aspirational brand leader in technical,
task-specific, performance work gloves, having created the performance work
glove category in 1998. The company continues to leverage its leadership
position in the safety, construction and industrial markets through the
design, development and distribution of specialized task-specific gloves for
numerous industries, including oil & gas exploration, automotive and
construction, as well as police, fire, first-responder and military. Ironclad
engineers and manufactures its products with a focus on innovation, design,
advanced material science and durability. Ironclad's gloves are available
through industrial suppliers, hardware stores, home centers, lumber yards,
auto parts stores and sporting goods retailers nationwide, and through
authorized distributors in North America, Europe, Australia and Asia.
Built Tough for the Industrial Athlete™
For more information on Ironclad, please visit www.ironclad.com.
About UnionBanCal Corporation & Union Bank, N.A.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding
company with assets of $88.2 billion at September 30, 2012. Its primary
subsidiary, Union Bank, N.A., is a full-service commercial bank providing an
array of financial services to individuals, small businesses, middle-market
companies, and major corporations. As of September 30, 2012, the bank operated
402 branches in California, Washington, Oregon, Texas, New York and Illinois,
as well as two international offices. UnionBanCal Corporation is a
wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a
subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud
member of the Mitsubishi UFJ Financial Group (MUFG) (NYSE:MTU), one of the
world's largest financial organizations. Visit www.unionbank.com for more
Important Information about Forward-Looking Statements
This message contains "forward-looking statements" that include information
relating to future events and future financial and operating performance.
Forward-looking statements should not be read as a guarantee of future
performance or results, and will not necessarily be accurate indications of
the times at which, or by which, that performance or those results will be
achieved. Forward-looking statements are based on information available at the
time they are made and/or management's good faith belief as of that time with
respect to future events, and are subject to risks and uncertainties that
could cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. Important factors
that could cause these differences include, but are not limited to:
fluctuations in demand for Ironclad's products, the introduction of new
products, Ironclad's ability to maintain customer and strategic business
relationships, the impact of competitive products and pricing, growth in
targeted markets, the adequacy of Ironclad's liquidity and financial strength
to support its growth, and other information that may be detailed from
time-to-time in Ironclad's filings with the United States Securities and
Exchange Commission. Examples of such forward looking statements in this
release include statements regarding guidance about and achievement of
financial goals and anticipated growth for 2013 and 2014. For a more detailed
description of the risk factors and uncertainties affecting Ironclad, please
refer to the company's recent Securities and Exchange Commission filings,
which are available at www.sec.gov. Ironclad undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
Liolios Group, Inc.
SOURCE Ironclad Performance Wear Corporation
Press spacebar to pause and continue. Press esc to stop.