Zumiez (ZUMZ) Enters Into Credit Agreement with PNC Bank

On December 20, 2024, Zumiez Inc. (NASDAQ: ZUMZ) announced that it, along with its subsidiaries Zumiez Europe Holding GmbH (ZEH) and Blue Tomato GmbH (BT), collectively known as the Borrowers, has entered into a Credit Agreement with PNC Bank, National Association. The Credit Agreement provides for a revolving credit facility of up to $25 million for general corporate purposes.

Included in the Credit Facility are standby letters of credit not exceeding $17.5 million, commercial letters of credit not exceeding $10 million, and borrowings in foreign currency up to $15 million in equivalent U.S. dollars. The borrowing available under the Credit Facility is reduced by the outstanding amount of letters of credit. The Credit Facility will be secured by cash and marketable securities kept in an account monitored by the bank, with the collateral value always equal to or greater than the $25 million commitment.

Borrowings under the Credit Facility will incur interest at the rate of SOFR plus 1.00% annually. The agreement includes standard covenants consistent with similar credit facilities but does not impose any financial covenants or ongoing/unused balance fees. The Credit Facility is set to mature on December 20, 2025.

The company submitted a copy of the Credit Agreement as Exhibit 10.37 with the SEC filing. This announcement is in compliance with Item 1.01 and Item 2.03 of Form 8-K, as disclosed in the filing.

Investors and stakeholders are encouraged to refer to the full text of the Credit Agreement attached to the Form 8-K filing for a comprehensive understanding of the terms and conditions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Zumiez’s 8K filing here.

About Zumiez

Zumiez Inc operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times.