Tag-It Pacific enters into revolving credit & term loan deal with Bluefin
28 Jun '07
2 min read
The revolving credit portion of the facility permits borrowings based upon a formula including the Company's receivables and inventory, and provides for interest payments at prime plus 2%.
The term loan bears interest at 8½% annually with monthly interest payments. Both of the notes are secured by all of the assets of the Company and mature on June 30, 2010.
The debt agreement provides for the issuance to the lender of 1,500,000 shares of Tag-It Pacific Inc common stock and the issuance of 2,100,000 warrants for the purchase of Tag-It common stock at prices ranging from 105% to 125% of the Company's closing per share market price during the last 20 days.
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