The Singing Machine Company has entered into an agreement for senior secured financing with PNC Bank, N.A.  Under the agreement, PNC will provide the Company with up to $15 million dollars in asset-based lending during the company's peak shipping season and reduce to $7.5 million from January 1 to July 31.

The PNC Facility is for three years and provides for borrowing against eligible accounts receivable and inventory, with sub limits on inventory up to $4 million and for letters of credit up to $3 million.  It provides Singing Machine with immediate cash availability on its eligible assets and is expected to provide the company with expanded access to working capital to operate and grow its business.

"Our anticipated sales growth for fiscal year-end March 2015 and beyond required that Singing Machine seek a substantially larger credit facility than in previous years. This PNC Facility replaces a previous $5 million receivables-based borrowing facility with another bank and aligns Singing Machine with a financial partner that is well positioned to grow with us for the long-term.  In addition to credit size, the PNC Facility provides a number of advantages over our previous banking facility -- it allows us to borrow against our eligible inventory, provides for letters of credit, and the cost of borrowing is reduced," commented Lionel Marquis, CFO. "This new credit facility is a necessary ingredient to implementing Singing Machine's growth plans.  It reduces our dependence on extended vendor financing and aligns us with a world-class financial partner."

Based in the US, Singing Machine is the North American leader in consumer karaoke products.