Coastal Contacts Inc. ("Coastal") (TSX:COA) (Stockholm:COA) today announced that it has entered into a loan agreement (the "Loan Agreement") with the Bank of America for a $5 million secured revolving line of credit (the "Line of Credit").
The Line of Credit is available until March 31, 2012 and Coastal may borrow and repay any principal amounts drawn on the Line of Credit during this period. The Line of Credit is subject to a maximum advance of the lesser of either $5 million and a percentage of certain of Coastal's working capital assets. Obligations under the Loan Agreement are secured by all of Coastal's assets.
"We are pleased with establishing a banking relationship with a reputable and global institution such as Bank of America," said Roger Hardy, Coastal's President and CEO. "This relationship represents another important step in the development of our world class organization."