Five Below amended its credit agreement with Wells Fargo Bank, adding a $20 million revolving line of credit that can be increased to up to $50 million.

Advances under the revolving credit facility are no longer tied to a borrowing base; however, the company is required to maintain eligible inventory at all times in an amount equal to at least $100 million.

The revolving credit facility may be increased to up to $50 million and expires on the earliest to occur between May 10, 2022 or an event of default. The revolving credit facility also includes a $20 million sub-limit for the issuance of letters of credit.

The amended agreement reduces the interest rate payable on borrowings to be, at the company’s option, a per annum rate equal to a prime rate or a LIBOR-based rate plus a margin of 1.00%. Letter of credit fees are equal to the interest rate payable on LIBOR-based loans.

Five Below discount store sell products that cost up to $5.