CCA Industries entered into a new credit facility with PNC Bank to pay off the company’s existing debt with CNH Finance Fund I, formerly known as SCM Specialty Finance Opportunities Fund. The funds will also be used for general working capital purposes.

The credit facility provides a term loan in an amount of $1.5 million and a revolving loan up to a maximum of $4.5 million.

The term loan is payable in consecutive monthly installments of $31,250 beginning March 1, 2018, and bears interest, at the election of the company, at either the PNC base rate plus 1% or 30, 60 or 90 day LIBOR rate plus 3.50%. All outstanding amounts under the revolving loan bear interest, at the election of the company, at either the PNC base rate plus 0.25% or 30, 60 or 90 day LIBOR rate plus 2.75%, payable monthly in arrears.

The commitment under the facility is for three years and expires February 5, 2021. The loans and all other amounts due and owing under the credit agreement and related documents are secured by a first priority perfected security interest in, and lien on, substantially all of the assets of the company.

Lance Funston, the company’s chairman of the board said, “The PNC credit facility validates our continued efforts to build a solid base for future growth. We have demonstrated that through posting seven consecutive quarters of profits. This facility, combined with a recent infusion of equity from Preservation Capital Solutions, will enable the company to focus on growing the top line sales.”

Funston controls Preservation Capital Solutions.

CCA Industries manufactures and markets health and beauty aids, each under its individual brand name.