SAN ANTONIO, Oct. 6 /PRNewswire-FirstCall/ -- Argyle Security, Inc. (OTC Bulletin Board: ARGL), ('Argyle') a service and solutions provider in the physical electronic security industry, announced today that on October 3, 2008 its wholly owned subsidiary 'Argyle Security USA' (d/b/a for ISI Security Group, Inc.) entered into a loan agreement with The PrivateBank and Trust Company, based in Chicago, Illinois (the 'Bank'). This agreement provides that the Bank will make available to Argyle Security USA a secured revolving line of credit up to the amount of $10 million, a secured revolving line of credit up to the amount of $5 million to be used for the issuance of letters of credit, and a term loan of up to $10 million (collectively, the 'Loans').
The Loans have a three-year maturity and, upon closing, the proceeds were used to pay off existing indebtedness, with the remaining availability to be used for working capital and other general corporate purposes. The Loans will be secured by liens on and security interests in the personal property of Argyle USA and guaranteed by the subsidiaries of Argyle Security USA. Argyle is not a guarantor to the Loans.
Bob Marbut, Chairman and Co-CEO of Argyle, commented, 'We are very pleased to be able to announce this financing with The PrivateBank. With these Loans, our borrowing capacity will be enhanced from our current facilities of $16.25 million to $25 million. This substantial increase will provide additional working capital to grow our corrections and commercial businesses in 2009 and beyond. We are also gratified to have been able to extend the maturity of our senior debt facilities from January 2010 to October 2011.
Additional Management Comments
Roni Chaimovski, Vice-Chairman and Co-CEO of Argyle Security, added, 'Our success in obtaining this significant debt financing during a time period of unprecedented challenges and uncertainty in the world capital markets clearly demonstrates a strong vote of confidence placed in Argyle by The PrivateBank. We are gratified by their steadfast commitment and we look forward to having The PrivateBank as a long-term financial partner.'
Sam Youngblood, President of Argyle Security USA, further commented, 'Naturally we are very pleased with this facility, especially given the current state of the credit markets.
