CCA Industries entered into a new credit facility with SCM Specialty Finance Opportunities Fund, an affiliate of CNH Finance, to pay off the company’s existing debt with Capital Preservation Solutions and for general working capital purposes.

The credit agreement provides for a revolving loan up to a maximum of $5.5 million. Outstanding amounts borrowed bear interest at the 30-day LIBOR rate plus 6% per annum (currently in the aggregate, 6.21% per annum), payable monthly in arrears.

The commitment under the credit agreement expires three years after the December 4, 2015 closing date. The revolving loan and all other amounts due and owing under the credit agreement and related documents are secured by a first priority perfected security interest in, and lien on, substantially all of the assets of the company.

Amounts available for borrowing under the Revolving Loan equal the lesser of the borrowing base, and $5.5 million in each case, as the same is reduced by the aggregate principal amount outstanding under the Line of Credit.

Lance Funston, the company’s chairman of the board commented, “In my judgment, the SCM credit facility validates our continued efforts to build a solid base for future growth.”

CCA Industries is a manufacturer and marketer of health and beauty aids.