Chic by H.I.S, Inc. Announces Increase in Credit Facility.NEW YORK--(BUSINESS WIRE)--Oct. 5, 1998--Chic by H.I.S, Inc. (NYSE NYSE See: New York Stock Exchange : JNS JNS Journal of Neurosurgery JNS Jump If No Sign JNS Narssaq, Greenland (Airport Code) JNS Journal of Neoplatonic Studies JNS Justification for New Start ) announced today that it has received a commitment from The CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Commercial Services, a unit of the CIT Group (NYSE: CIT), to provide a $60 million credit facility. The credit facility consists of a $40 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and a $20 million term loan. The credit agreement, which will be secured by, among other things, the accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , finished goods inventory and stock of the company's German subsidiary, improves the company's borrowing availability by increasing the advance ratios and extends the maturity of the company's financing. The revolving credit facility will have an initial term of three years and the term loan will commence amortization after two years. The facility will replace the company's existing $50 million credit agreement, for which the company has received a temporary waiver through Oct. 31, 1998. Daniel Rubin, chief executive officer, stated, "This facility provides the company with the flexibility and structure appropriate for financing our capital expansion in Mexico and working capital needs. CIT has responded to our needs with terms that are right for our growth and our future. CIT has an understanding of our company and our industry and we look forward to a long relationship with them as we build and expand our business." Chic is a leading designer and manufacturer of popularly priced denim jeans, casual pants and shorts for women, girls, men and boys. Chic's German subsidiary markets upscale women's and men's jeans and casual pants under the H.I.S. brand in Germany, Austria, Switzerland, the Czech Republic, Slovakia and Poland. This press release may contain forward-looking statements within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and oF 1995. Although the company believes its plans are based upon reasonable assumptions as of the current date, it can give no assurance that any expectations will be attained. Factors that could cause actual results to differ materially from expectations include: general business and economic conditions, competitive factors, pricing and fluctuations in consumer demand. |
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