Wells Fargo Bank provided American retailer Tilly’s with a new three-year, $65 million ABL facility, replacing the company’s previous $25 million revolving credit facility with the bank.

The ABL facility bears interest on borrowings at LIBOR plus 200 to 225 basis points, depending on usage and remaining availability, and includes an unused credit fee of 37.5 to 50 basis points, also depending on remaining availability. Total allowable borrowings under the ABL facility are determined monthly as the lesser of $65 million and a percentage of eligible merchandise inventories and accounts receivable. The ABL facility is secured by substantially all company assets. Pursuant to the terms of the ABL facility, the company is prohibited from declaring or paying any cash dividends to its stockholders or repurchasing its own common stock, in each case until Nov. 9, 2021. The ABL facility matures on Nov. 9, 2023.

“We believe our new ABL facility will greatly improve our financial flexibility in light of the ongoing pandemic, both by meaningfully increasing our borrowing capacity and significantly reducing financial covenant pressures on our business,” Ed Thomas, president and CEO of Tilly’s, said.