Parlux Boosts Credit Line

The line is extended through July 2008.
Author:
Publish date:

Parlux Fragrances

(PARL)

boosted its credit line with GMAC Commercial Finance to $30 million from $20 million, with a further increase to $35 million at the company's option.

The fragrance company said the line, with improved terms, was extended through July 2008. The interest rate was reduced from prime to 0.25% under prime.

"We are pleased to continue to partner with GMACC to finance our growth," said finance chief Frank A. Buttacavoli. "They have been with us for a number of years and have always been responsive to our needs. This new agreement reflects their confidence in us, the improvement in our earnings, and the strength of our balance sheet. We prudently requested the line increase to support our growth objective of exceeding $300 million in sales for our next fiscal year ending March 31, 2007."

On Wednesday, Parlux shares fell $1.36 to $30.50.