Arms-maker Sturm, Ruger closed a $40 million revolving line of credit with Wells Fargo.

According to a related 8-K filing, the facility includes a $10 million submit for letters of credit. Advances made under the line of credit can be used for general corporate purposes.

Outstanding amounts under the line of credit will bear interest at either 1) a fixed rate per annum equal to the LIBOR rate for a fixed interest period plus 150 basis points, or 2) a fluctuating rate per annum equal to the highest of (i) the bank’s prime rate, (ii) the one-month LIBOR rate plus 150 basis points and (iii) the federal funds rate plus 150 basis points. All amounts outstanding under the credit agreement are due on August 31, 2019.

The credit facility is available to the company provided that no event of default under the credit agreement shall have occurred.

The company may repay loans in whole or in part at any time, provided that LIBOR rate loans may be subject to a prepayment fee.