SOURCE: Talon International
LOS ANGELES, CA--(Marketwire - Sep 4, 2012) - Talon International, Inc. (OTCQB: TALN), a leading global supplier of zippers, apparel fasteners, trim and interlining products, announced the end of its term loan and revolving debt agreement with CVC, California, LLC, a division of ComVest Capital, Inc. The debt agreement, which originated in 2007 and was extended to July 31, 2012, was allowed to expire by the Company in accordance with its terms.
"We are pleased to have this debt facility now fully behind us and the Company relieved of all fees, liens, claims, covenants and restrictions on our operations," noted Lonnie Schnell, Talon's CEO. "The CVC debt agreement was a vital step in our business restructuring at the time it was put into place, and helped the Company bridge a difficult transition." In 2010 the lender agreed to convert all of the outstanding debt under this facility into preferred shares, but the revolver facility and all of its liens, covenants and restrictions were kept in place for another two years to ensure the Company had adequate resources available in the event the business required it. During this two year period the Company borrowed no additional funds under the facility and closed its fiscal second quarter at June 30, 2012 with $7.4 million in cash and cash equivalents available for operations.
"With this debt facility now ended the Company is virtually debt and lien free and our operating successes can be fully reinvested in growing our business," Mr. Schnell continued. During calendar year 2011 the Company added nearly $3.0 million to cash reserves, and added approximately $1.6 million in cash during the first six months of 2012.
About Talon International, Inc.
Talon International, Inc. is a global supplier of apparel fasteners, trim and interlining products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers. Talon manufactures and distributes zippers and other fasteners under its Talon® brand, known as the original American zipper invented in 1893. Talon also designs, manufactures, engineers, and distributes apparel trim products and specialty waistbands under its trademark names, Talon, Tag-It and TekFit, to major apparel brands and manufacturers including Wal-Mart, Kohl's, J.C. Penney, Victoria's Secret, Tom Tailor, Abercrombie and Fitch, Polo Ralph Lauren, Fat Face, Phillips-Van Heusen, Reebok and Juicy Couture. The company has offices and facilities in the United States, United Kingdom, Hong Kong, China, Taiwan, India and Bangladesh.