Universal Power Group secures $30 million revolving credit agreement and $4 million term loan with Comerica Bank

USA: Universal Power Group Inc., 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 percent 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 percent and 2.125 percent.

“We are pleased to begin this new relationship with Comerica Bank and are proud to be recognized by such a reputable financial institution for our solid financial performance,” stated Ian Edmonds, UPG’s president and CEO. “This new credit facility will allow us to continue to control our borrowing costs, while providing a readily available source of capital to fund our short- and long-term initiatives for future growth.”