Tandy Brands Accessories announces new credit line

ARLINGTON, Texas (AP) — Tandy Brands Accessories Inc., which makes accessories such as wallets and belts, said Monday it has amended its line of credit with Comerica Bank.

The Arlington, Texas-based company said the new agreement provides financing of up to $27.5 million, with a term of 18 months, running through April 2011. The interest rate is about 1 percent below the previous line of credit, the company said.

The new financing will help the company meet its near-term seasonal cash requirements and provide long-term stability, said CEO Rod McGeachy.

"Finalizing this long-term financing is an important achievement as we continue to stabilize our operating platform and markedly improve our financial position, cash cycle and liquidity," he said.

The improved terms signals the financial community's trust in company management and acknowledges Tandy's improved financial and operating performance, he said.

In August, the company reported a narrower fourth-quarter loss of $2.5 million, or 36 cents per share, compared with a loss of $4.7 million, or 67 cents per share, the year before. Its annual loss narrowed to $15.1 million, or $2.18 per share, compared with a loss of $49.3 million for the fiscal year 2008 year. Revenue fell 14 percent.

Tandy said its corporate reorganization implemented in January and a new management team helped improve performance.

The reorganization included cutting salaried staff by 17 percent and discontinuing some businesses. The changes were expected to save $3 million a year.

Shares of Tandy Brands rose 14 cents, or 4 percent, to $3.64. They have traded between $1.25 and $4.85 in the past year.