Lakeland Industries entered into a loan agreement with SunTrust Bank.

The agreement provides the company with a secured $20 million revolving credit facility, which includes a $5 million letter of credit sub-facility, and $1,575,000 term loan with SunTrust.

Lakeland may request from time to time an increase in the revolving credit loan commitment of up to $10 million for a total commitment of up to $30 million.

At the closing, the company’s existing financing facility with AloStar Bank of Commerce was fully repaid and terminated using proceeds of the revolver in the amount of approximately $3 million. Proceeds will also be used to finance working capital and other general corporate needs.

The credit facility matures on May 10, 2020 and borrowings bear interest at an interest rate determined by reference whether the loan is a base rate loan or Eurodollar loan, with the rate election made by the company at the time of the borrowing or at any time the company elects.