MINNEAPOLIS, Jan. 25, 2016 /PRNewswire/ -- Appliance
Recycling Centers of America, Inc. (NASDAQ: ARCI), a leading
provider of appliance retailing and recycling services, today
announced that the Company has entered into a one-year renewal of
its credit agreement with PNC Bank, National Association (PNC),
which includes a senior secured revolving line of credit and term
loan. The extension of the credit agreement, which was signed on
January 22, 2016, extends the
agreement to January 31, 2017.
Under terms of the extension, ARCA may borrow an aggregate
principal amount of up to $15 million
under the revolving line of credit, the same amount allowed under
the original three-year credit agreement signed on January 24, 2011. The Company intends to use the
revolving line of credit for ongoing working capital needs and
general corporate purposes. The extension of the credit
agreement also reset the financial covenants.
Edward R. (Jack) Cameron,
President and Chief Executive Officer, commented, "We appreciate
the confidence that PNC Bank has shown in ARCA by renewing its
credit agreement for an additional year. The $15 million revolving line of credit, combined
with the decisive steps we are taking in 2016 to improve our
operational execution and profitability, better positions us to
capitalize on future growth opportunities."
About ARCA
ARCA's three business components are uniquely positioned in
the industry to work together to provide a full array of
appliance-related services (www.ARCAInc.com). ARCA
Advanced Processing, LLC employs advanced technology to refine
traditional appliance recycling techniques to achieve optimal
revenue-generating and environmental benefits
(www.ARCAap.com). ARCA Recycling's regional centers
process appliances at end of life to remove environmentally
damaging substances and produce material byproducts for recycling
for utilities in the U.S. and Canada
(www.ARCARecyclinginc.com,
www.ARCACanada.ca). Eighteen company-owned stores under
the name ApplianceSmart, Inc.®
(www.ApplianceSmart.com) sell new appliances directly
to consumers and provide affordable ENERGY STAR® options for energy
efficiency appliance replacement programs.
This press release contains statements that are
forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995, including statements regarding
ARCA's future success. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from the statements made, including the risks
associated with general economic conditions, competition in the
retail and recycling industries and regulatory risks. Other factors
that could cause operating and financial results to differ are
described in ARCA's periodic reports filed with the Securities and
Exchange Commission. Other risks may be detailed from time to time
in reports to be filed with the SEC.
Logo -
http://photos.prnewswire.com/prnh/20140210/CG62255LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/appliance-recycling-centers-of-america-announces-renewal-of-credit-agreement-with-pnc-bank-300208695.html
SOURCE Appliance Recycling Centers of America, Inc.