MAYWOOD, NJ -- (Marketwire) -- 12/27/11 -- Jaclyn, Inc. (OTCQX: JCLY) (PINKSHEETS: JCLY) today announced that it has entered into a Second Amended and Restated Revolving Loan Agreement with TD Bank, N.A., as Agent and a lender, and Israel Discount Bank of New York, as a lender. The term of the credit facility has been extended until November 30, 2013 and continues to provide for short-term loans and the issuance of letters of credit in an aggregate amount not to exceed $60,000,000. Based on a borrowing formula, the Company may borrow up to $30,000,000 in short-term loans ($40,000,000 during the period from September 15 to December 15 during each year) and up to $60,000,000 including letters of credit. The borrowing formula allows for an additional amount of letters of credit to be issued during the Company's peak borrowing season from March through October. The Company's non-real estate assets are pledged to the bank as collateral. The line of credit requires that the Company maintain a minimum tangible net worth and interest coverage, and imposes a debt-to-equity requirement, in each case measured annually. Borrowings under the credit facility bear interest based on, at the Company's option: (a) the prime rate, with a minimum interest rate of 3.25%, or (b) a floating 30-day LIBOR rate plus 250 basis points, with a minimum LIBOR rate of 0.50%.
Forward Looking Statements
Note: This press release contains information concerning, among other things, our future plans and objectives that are or may be deemed to be forward-looking statements. However, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, general economic and business conditions (including the prolonged economic recovery and disruptions in credit markets); competition; potential changes in customer spending; acceptance of our product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; a highly promotional retail environment; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates as well as other significant accounting estimates made in the preparation of our financial statements; and the impact of current and potential hostilities in the Middle East and in other geographic areas; as well as other geopolitical concerns. You are urged to consider all such factors. In light of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. We assume no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's sleepwear, infants' and children's apparel, handbags, premiums and related accessories. Our web site is at www.jaclyninc.com.