Harte-Hanks, a leader in developing customer relationships, experiences and defining interaction-led marketing, has entered into a new credit agreement and is taking actions designed to enhance the company's financial flexibility.

The company closed a new $110 million, five-year senior secured credit facility with Wells Fargo Bank, N.A. This facility consists of a $65 million (maximum) revolving credit facility and a $45 million term loan facility. The new credit facility replaces the company's existing credit facilities set to expire in August 2016.

To further enhance the company's financial flexibility, the company will also discontinue payment of dividends. The previously declared first quarter cash dividend of 8.5 cents per share will be paid on March 15, 2016, as previously announced.

Chief Executive Officer Karen Puckett said, "After receiving interest from a number of financial institutions, we were pleased to select Wells Fargo as our credit partner as we pursue our goal of increasing shareholder value and continuing on our path of establishing ourselves as the solution for organizations looking for an enhanced customer journey that drives brand engagement and marketing returns. The steps we have taken today will result in additional cash on our balance sheet to invest in the business as well as reduced principal loan payments. We are well positioned to support our future product and strategy initiatives and improve execution and performance while we continue to generate positive adjusted operating income and cash flow."