Universal Power Group, a Texas-based distributor and supplier of batteries and related power accessories, and a third-party logistics provider, announced the signing of a four-year credit agreement and term loan with Comerica Bank.

The $30 million credit facility includes an accordion feature that will allow for a $10 million increase to the credit line if needed. The new credit agreement expires on Dec. 31, 2016, and replaces UPG’s current credit agreement which expires on June 30, 2013. The interest rate associated with the new credit agreement is based on the London Interbank Offered Rate (LIBOR), plus 1.875% for the first year of the agreement. During years two through four of the agreement, the rate will vary based on the ratio of UPG’s total debt to total tangible net worth, and will be set at LIBOR plus a spread of between 1.875% and 2.125%.

The company maintains a credit facility to finance short-term demands for working capital and other needs associated with its long-term growth initiatives. In conjunction with the new credit agreement, UPG has implemented a $4 million, four-year term loan which will be used to refinance existing debt under the company’s previous credit facility. The term loan is payable in equal quarterly installments of principal plus accrued interest and a balloon payment at the end of year four.

Universal Power Group is a supplier and distributor of batteries, power accessories, security and cable products, and a provider of supply chain and other value-added services. UPG's product offerings include proprietary brands of industrial and consumer batteries of all chemistries, chargers, power accessories, solar products, wire and cable and security products. UPG's supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly and coordinating battery recycling efforts.