LOS ANGELES, Dec. 11, 2012 /PRNewswire/ -- Ironclad Performance Wear Corporation (ICPW.OB), the recognized leader in high-performance task-specific performance work gloves, has entered into a new commercial banking relationship with Union Bank of California which increases the company's access to working capital and reduces borrowing costs.
Under the terms of this new agreement, Ironclad has total borrowing capacity of up to $6 million, with the first $3.5 million in unrestricted funds and borrowings above this amount subject to a borrowing base. The new credit line matures on November 30, 2014 and allows the Company to fix varying amounts of debt at an interest rate of LIBOR plus 2% and carry the balance at the bank's reference rate minus 0.25%. This funding replaces a $3 million receivables factoring agreement with another party which Ironclad used over the past three years until its recent expiration.Ironclad will deploy this new line as-needed to help fund anticipated growth in 2013 and 2014, including its plans for international expansion. "This new banking relationship, which also includes traditional commercial banking activities, will result in an annual savings of about $125,000," said Thomas Kreig, Ironclad's Senior Vice President of Finance. "Our continued success and strengthened financial position enabled us to secure more favorable financing terms and pursue a competitive selection process. By selecting Union Bank, we have established a close working relationship with a trusted and reliable institution that we believe will meet our banking needs at attractive terms over the next several years." About Ironclad Performance Wear CorporationIronclad Performance Wear is an aspirational brand leader in technical, task-specific, performance work gloves, having created the performance work glove category in 1998. The company continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for numerous industries, including oil & gas exploration, automotive and construction, as well as police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves are available through industrial suppliers, hardware stores, home centers, lumber yards, auto parts stores and sporting goods retailers nationwide, and through authorized distributors in North America, Europe, Australia and Asia. Built Tough for the Industrial Athlete™