Tandy Leather Factory announced an agreement with BOKF, dba Bank of Texas for a $6.0 million revolving credit facility. This credit facility replaced the company’s prior line of credit with JPMorgan Chase.
The new agreement expires in September 2017. Further, BOKF is providing a line of credit facility of up to $10 million for the purpose of repurchasing the company’s common stock.
The $6 million revolving credit facility is secured by the company’s inventory. The $10 million facility is secured by a deed of trust on the company’s corporate headquarters.
Amounts drawn under either facility accrue interest at LIBOR plus 1.85%. No proceeds were drawn on either line of credit upon closing. There are no unused line fees associated with either facility.
Jon Thompson, CEO and president of Tandy Leather Factory explained, “Bank of Texas has been a solid partner of ours for several years and we appreciate the opportunity to expand that relationship as they have a great local team. We are not eliminating our relationship with JPMorgan Chase Bank as we rely on their expertise and capabilities internationally. They will continue to be valuable partner.”
Shannon L. Greene, CFO and treasurer, added, “Bank of Texas offered us a lower interest rate than what we had with JPMorgan Chase and doesn’t require unused line fees, which was an important factor as we considered our options.”
Fort Worth, TX-based Tandy Leather Factory is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits.