ShopHQ has increased its credit facility with PNC Bank, National Association from $50 million to $75 million, and may use some of the money to expand one of its distribution centers, the home shopping network said Wednesday.
The $25 million credit facility expansion includes a $10 million increase to the company’s current revolving credit facility, from $50 million to $60 million, and provides conditions for a $15 million term loan.
ShopHQ can draw on that loan “to support the potential expansion of its Bowling Green, Ky., distribution center,” the network said in a press release.
The credit facility’s maturity date remains May 1, 2018.
“The $25 million expansion of our credit facility substantially improves our liquidity and better positions us to support future growth,” ShopHQ Chief Financial Officer Bill McGrath said in a statement.
“Through the first nine-months of fiscal year 2013, our shipped unit volume increased 24 percent over the prior year,” he said.
“Improvements in our product mix, associated reductions in our average selling price, and most importantly, continued improvements in our customer experience have enabled us to increase our rolling 12-month customer count by 13 percent to 1.25 million as of Nov. 2, 2013.”
“Investing in our operational infrastructure will further enhance our customer experience and strengthen our foundation for long-term, sustainable growth. The expansion of the PNC credit facility provides great flexibility as we evaluate options for increasing our distribution and fulfillment capacity.”