UPDATE 1-Crocs says entered new loan agreement
* Enters new revolving loan agreement with PNC
* May borrow up to $30 million under new revolver
LOS ANGELES, Sept 30 (Reuters) - Shoe maker Crocs Inc (CROX.O) on Wednesday said it has secured up to $30 million in revolving loans under a new credit agreement with PNC Financial Services Group Inc (PNC.N).
Crocs, known for its brightly colored plastic clogs, has been slashing inventory, reducing debt and boosting profitability as part of a turnaround effort. Executives recently said the former Wall Street darling could turn a profit sometime next year. [ID:nN07399668]
Crocs said it entered the new asset-backed revolving credit facility on Sept. 25. The financing may be used for working capital needs and other items outlined in the agreement.
Russ Hammer, Crocs' chief financial officer, said the new credit agreement would give the company the liquidity and flexibility it needs for its turnaround.
Borrowings under the asset-based revolving credit facility would be subject to variable rates of interest and would be secured by all of the company's assets.