Port Washington-based computer retailer Systemax said Tuesday that it has refinanced a line of credit to obtain a new, secured $200 million five-year line of credit using all its assets as collateral.
Systemax signed the credit agreement with JPMorgan Chase Bank last week. It replaces a previous line of credit signed five years ago.
Systemax gets an initial commitment of $125 million with a mechanism to later increase the line by $75 million. Its loan collateral includes inventory, receivables and other accounts and assets.
Separately, Systemax last week agreed to pay $300,000 in a settlement with the Florida attorney general, after numerous customers complained that its subsidiaries TigerDirect and Onerebate failed to pay promised rebates. Systemax must make good on all rebates it had failed to fulfill, and agreed to to not throw away the rebate forms and other documents sent in by consumers attempting to claim rebates.
At stake was a total of $80 million in rebates, which the company says it has now paid. However, the Florida attorney general demanded a spreadsheet listing those individual payments to customers.
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