The Singing Machine Company, Inc. – the North American leader in consumer karaoke products –  announced it has executed a tri-party Intercreditor Agreement for a Revolving Line of Credit on eligible accounts receivable and inventory.

On June 16, 2020 the Company entered into a two-year Loan and Security Agreement for a $10,000,000 financing facility with Crestmark, a division of Meta Bank, NA (“Crestmark”) on eligible accounts receivable. Further, the Company also executed a two-year Loan and Security Agreement with Iron Horse Credit (“Iron Horse”) for up to $2,500,000 in inventory financing.

Highlights:

• The combined facility provides the Company with up to $12,500,000 in financing during the Company’s peak season.
• The Facility allows for the Company to borrow against eligible accounts receivable and inventory to provide working capital to operate the business.
• Interest on the loan with Crestmark is Prime Rate plus 5.5% (with a minimum of 8.75% p.a.) and interest on the loan with Iron Horse is 15.5% p.a.

Gary Atkinson, Singing Machine CEO, commented, “We're delighted to close on this Facility with Crestmark and Iron Horse which will provide us with liquidity to meet our goals for this coming year and beyond.”