Phoenix Footwear Group, Inc. reported that it had entered into a two-year secured revolving credit agreement with First Community Financial. The agreement replaces a similar credit agreement with Wells Fargo Bank.
Phoenix Footwear Group, Inc. now has a $4.5 million line of credit with First Community Financial, which is a subsidiary of Pacific Western Bank. Phoenix Footwear Group, Inc. has $2.0 million drawn on the facility as of the first week of December 2009. The credit agreement calls for interest at prime plus 275 basis points, with a 6% minimum.
Rusty Hall, the CEO of Phoenix Footwear Group, Inc. said, “We are pleased to be able to announce our new credit facility. While this has been a lengthy process, it has resulted in a significant increase in capacity, a more competitive cost of funds and a multi-year commitment giving us working capital strength and flexibility to support our efforts to grow our brands.”
Phoenix Footwear Group, Inc. designs and sells men’s and women’s footwear and accessories. The brands it owns include Trotters, SoftWalk, and H.S. Trask. Phoenix Footwear Group, Inc. reported a net profit of $60,000, or $0.01 per share, in the third quarter of fiscal 2009. Revenues were reported at $5.5 million.