Phoenix Footwear Group, Inc. (announced that it has entered into a new Bank Financing Agreement with NewStar Business Credit, LLC. On February 2, 2015, the company entered into a Loan and Security Agreement with NewStar Business Credit, LLC. The Loan Agreement provides for up to $9.0 million in borrowing capacity consisting up to $8.0 million (subject to a borrowing base as defined in the Loan Agreement) with a five-year maturity (the “Revolving Credit Facility”) and a term loan of $1 million (the “Term Loan”). The principal amount of the Term Loan is payable in 36 equal monthly installments of $27,778, plus accrued interest, on the first day of each calendar month beginning March 1, 2015.

Interest accrues on the principal amount outstanding under the revolving credit facility at the rate equal to the greater of (i) the rate per annum published on each Business Day in the “Money Rates” table of The Wall Street Journal as the one-month LIBOR rate, adjusted daily, and (ii) 1.0% (such greater amount, the “LIBOR Rate”) plus 3.75%. Interest accrues on the principal amount outstanding under the Term Loan at the rate equal to the LIBOR Rate plus 5.0%.

This new Revolving and Term facility offers the Company additional working capital at a substantially reduced cost.

Commenting on the new loan agreements, James Riedman, President and CEO of Phoenix Footwear added, “We have grown for three consecutive years, the last two of which have been at four times the industry average. We are especially pleased to be able to secure this additional capacity to fund our continued growth, while at the same time, reduce our capital costs.”

Phoenix Footwear Group, Inc., headquartered in Carlsbad, California, specializes in quality comfort women’s and men’s footwear with a design focus on fitting features. Phoenix Footwear designs, develops, markets and sells footwear in a wide range of sizes and widths under the brands Trotters and SoftWalk.