Kirkland’s, a retailer of home décor and furnishings, entered into a supplemental credit facility that will increase its available credit by up to $12 million, specifically securing additional debt financing through a new first-in last-out, asset-based, delayed-draw term loan facility. The new facility is in addition to the company’s existing $90 million asset-based revolving credit facility.

According to an 8K filed with the SEC, Gordon Brothers Group, via an affiliate entity (1903P Loan Agent LLC) is the administrative agent and lender for the new FILO facility, while existing revolver is with Bank of America.

Kirkland’s will use proceeds from the new facility, when drawn, to provide additional liquidity for ongoing working capital needs. As of closing, the company’s combined credit availability under both credit agreements was approximately $21.5 million.

“As we move into 2024, we are pleased to have access to additional capital to further bolster our liquidity position,” Mike Madden, CFO of Kirkland’s, said. “The additional capital provides us with sufficient room to continue executing our strategic repositioning while giving us the ability to accelerate components of our strategy aimed at returning the company to historical levels of performance.”