Specialty Catalog Corp. has entered into a five-year credit agreement with Fleet National Bank for $12.5 million, the company announced this week.
The agreement price could increase to $13 million in 2002 if the cataloger continues to perform well, said Tom McCain, chief financial officer at Specialty Catalog Corp., South Easton, MS.
The agreement includes a $3.25 million two-year revolving credit, which would increase as principal payments on the note are paid. The agreement also includes a $9 million five-year term note.
“What this [agreement] does is put us in a firm financial position and allows flexibility to operate and to grow our business,” McCain said.
Specialty Catalog Corp. is a direct marketer that sells primarily women's wigs and hairpieces through its catalogs, Paula Young and Especially Yours. The company was created in 1978 and circulates 25 million catalogs a year between the two titles.