ShopNBC increased the size of its credit facility with PNC Bank from $40 million to $50 million and has extended the facility’s maturity to five years, through May 1, 2018, the network said Tuesday.
The existing three-year facility was scheduled to mature February 9, 2015. PNC N.A. is a subsidiary of PNC Financial Services Group.
The expanded facility carries the same interest rate of LIBOR plus 3 percent. The credit facility is secured by ShopNBC’s and its subsidiaries’ accounts receivable, equipment, inventory, and certain real estate as well as other assets.
The facility will be used to finance inventory and other working capital needs as well as capital expenditures designed to support the continued growth of the business.
“PNC is a valued partner of ValueVision (ShopNBC) that has played an important role in supporting our business,” ShopNBC Chief Financial Officer Bill McGrath said. “The expanded facility improves our liquidity and better positions us to support continued growth.”