The Singing Machine Company executed a tri-party intercreditor agreement for a revolving line of credit on eligible accounts receivable and inventory. The company entered into a two-year loan and security agreement for a $10 million financing facility with Crestmark, a division of Meta Bank, on eligible accounts receivable. Further, the company executed a two-year loan and security agreement with Iron Horse Credit for up to $2.5 million in inventory financing.
The combined facility provides Singing Machine with up to $12.5 million in financing during the company’s peak season. The facility allows for the company to borrow against eligible accounts receivable and inventory to provide working capital to operate the business. Interest on the loan with Crestmark is Prime Rate plus 5.5% (with a minimum of 8.75% p.a.) and interest on the loan with Iron Horse is 15.5% p.a.
“We’re delighted to close on this facility with Crestmark and Iron Horse which will provide us with liquidity to meet our goals for this coming year and beyond,” Gary Atkinson, CEO of Singing Machine, said.
Singing Machine is a North American provider of consumer karaoke products.
