Talon immediately used proceeds from the term loan and $1.0 million of the revolving credit facility to repay in full the company's $5.8 million of indebtedness to CVC California, LLC that was scheduled to mature on January 12, 2014.
Amounts outstanding under the revolving credit facility mature in two years and the term loan is a fully amortized loan payable monthly over three years. Outstanding amounts bear interest at favorable market rates and the credit facility is secured by substantially all of Talon assets.
"We are delighted to obtain this new credit facility from Union Bank, and particularly on attractive terms," said Lonnie Schnell, Talon's Chief Executive Officer.
"Refinancing the promissory note from our former preferred stockholder is the final step in our July 2013 redemption of all of our preferred shares and is an important milestone in our multi-year effort to strengthen Talon's capital structure." In addition to refinancing the promissory note, the credit agreement provides Talon access to additional working capital to fund strategic growth initiatives.
"Our presence in the U.S., Europe and Southeast Asia is a significant competitive advantage that positions Talon to serve leading retailers and apparel manufacturers worldwide. Improved access to working capital will enable us to leverage this advantage by continuing to invest in sales, marketing and new product development initiatives to expand and strengthen our market position. With our improved financial strength and flexibility, we are positioned better than ever to deliver sustained profitable growth and value to our stockholders," concluded Schnell.
"Over the past several years, Talon has demonstrated a highly successful turnaround," said Rudy Cedillos, Vice President of Union Bank. "The company is now poised for new growth and this financing will provide Talon the flexibility and resources it needs to execute on its growth strategy. Union Bank is proud to support Talon and looks forward to a long and mutually beneficial relationship."
About Talon International, Inc.
Talon International, Inc. is a major supplier of custom zippers, complete trim solutions and stretch technology products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers worldwide.
Textiles | On 25th May 2016
Fabric and garment exports from the Southeast Asian nation of Vietnam ...
Textiles | On 25th May 2016
Proposing a joint coalition of trade and industry bodies, the...
Apparel/Garments | On 25th May 2016
The textile and apparel industry in Mauritius has become a reliable...
Mangalam Industries Pvt Ltd
How is the man-made fibre (MMF) industry shaping up? How is Mangalam...
Ozone PB Spintex Limited
How has the Indian spinning industry fared in the last two years? What...
What kind of fabric is in demand in export markets of home textiles? What...
Bombay Textile Research Association
<b><i>Bombay Textile Research Association (BTRA) is a leading name in...
Technical Absorbents Ltd
<b><i>Mark Paterson, R&D manager of Technical Absorbents Ltd talks about...
<b><i>About one in every 20 patients picks up an infection while...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Label Ritu Kumar
"There are a lot of people wearing western clothes in India as well. But...
Apparel/Garments | On 23rd May 2016