The company’s previous credit facility with Wells Fargo Bank matured on June 25, 2018 and was terminated in accordance with its terms.
“This new credit facility provides improved terms and flexibility in our capital structure, with a lower annual fee expense structure,” said Charles & Colvard Chief Financial Officer Clint J. Pete. “We are committed to having the financial capacity and resources in place to pursue growth opportunities, invest in the business, and implement other shareholder value enhancing initiatives.”
The new facility will be used for working capital and general corporate purposes. It is secured by Charles & Colvard assets, and subject to customary covenants. The facility is currently undrawn, and the company has no other long-term debt.
“As a non-bank lender, we were able to work with the Charles & Colvard team to customize a financing solution that best fit their needs. We believe this asset-based facility will have a positive impact on their business,” said WOCF CEO Robert Grbic.
Founded in 1995 and based in Research Triangle Park, NC, Charles & Colvard is an e-commerce-driven business and the leading worldwide source of lab-created moissanite, a rare gemstone formed from silicon carbide.