Firearms maker Sturm, Ruger & Co. has inked a new credit facility with Wells Fargo Bank, National Association. The Credit Agreement provides for a revolving line of credit of up to $40 million, with a $10 million sublimit for letters of credit. Advances made under the line of credit can be used for general corporate purposes. Outstanding amounts under the line of credit will bear interest at either 1) a fixed rate per annum equal to the LIBOR rate for a fixed interest period plus 150 basis points, or 2) a fluctuating rate per annum equal to the highest of (i) the Bank’s prime rate, (ii) the one-month LIBOR rate plus 150 basis points and (iii) the federal funds rate plus 150 basis points. All amounts outstanding under the Credit Agreement are due on August 31, 2019.

Pursuant to the Credit Agreement, the credit facility is available to the Company provided that no event of default under the Credit Agreement shall have occurred and be continuing. Upon the occurrence of an event of default under the Credit Agreement, including payment defaults, covenant defaults, and other customary defaults, the Company’s obligations under the Credit Agreement may be accelerated. The Company may repay loans in whole or in part at any time, provided that LIBOR rate loans may be subject to a prepayment fee. The Company’s obligations under the Credit Agreement are unsecured and have not been guaranteed by any other person or entity.