In an SEC filing November 12th, ITEX, one of the two publicly traded barter exchanges in the United States, disclosed closing a 1 million dollar credit line increase with US Bank, effectively giving ITEX a 2.5 million dollar revolving credit line. According to the filing, the loan
will be used exclusively by the Borrower for working capital and other regular and valid purposes. The Borrower will not, without the prior written consent of the Bank, redeem, purchase, or retire any of the capital stock or declare or pay any dividends, or make any other payments or distributions of a similar type or nature including withdrawal distributions.
According to the same filing
Steven White, Chairman and CEO noted, “There is currently no outstanding balance under this line of credit and we have no immediate plans for use. However, we felt it prudent to increase our access to additional capital in order to position us to take advantage of potential opportunities. U.S. Bank has been a great partner over the years and we appreciate the support it has provided to help us expand our business.”Timothy J. Flynn, Vice President of Commercial Banking for U.S. Bank, commented, “We are pleased with ITEX’s consistent financial performance and overall success during the last six years. During this period, ITEX has done an exceptional job strengthening its balance sheet, increasing positive cash flow, eliminating debt associated with its acquisitions, and demonstrating sound fiscal management. These factors, along with our positive and open communications with ITEX’s management, were instrumental in approving the increase in the line of credit limit.”
