PFSweb, an e-commerce order fulfillment provider, closed a $25 million asset-based secured lending agreement with Texas Capital Bank, the lending affiliate of Texas Capital Bancshares.
Under the credit agreement, and subject to the terms set forth therein, the lenders have agreed to provide Priority Fulfillment Services, a subsidiary of PFSweb, with a $25 million revolving loan facility for a period of five years. Availability under the credit facility may not exceed a borrowing base of 85% of eligible accounts receivable, as defined in the agreement, minus certain reserves and holdbacks. Advances under the credit facility accrue interest at a variable rate plus an applicable margin.
“This new credit facility provides incremental financial liquidity and the flexibility to support our long-term growth strategy,” Mike Willoughby, CEO of PFSweb, said. “While we do not anticipate near-term borrowings, as we believe we have sufficient cash to support our current business activities, this incremental flexibility is anticipated to enhance our overall financial strength to support our strong growth outlook. We appreciate Texas Capital Bank’s support and partnership in securing this agreement.”
