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
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
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. We have developed a strong working relationship with our bankers at The PrivateBank, and they have proven their commitment by developing a thorough understanding of the unique drivers our business model. The substantial increase in our borrowing capacity is anticipated to provide working capital and also enable us to increase bonding capacity to facilitate growth in our corrections business units."
About Argyle Security, Inc.
Formed in 2005 and headquartered in San Antonio, TX , Argyle's goal is to become a leading global provider of services and solutions in the physical electronic security industry through an integrated buildup strategy. In July 2007 , Argyle acquired ISI Security Group, Inc. In February 2008 , Argyle created Argyle Security USA, which encompasses ISI Security Group's operations in both the corrections and commercial sectors, also including the assets and operations acquired as a result of the PDI, Com-Tec and FireQuest acquisitions during 2008. Argyle's channel focus is Video Surveillance, Access Control, Perimeter Protection, Intrusion Protection, Fire Detection and Threat Analysis, serving selected commercial, governmental and residential markets. Argyle Security, Inc. currently has two reporting segments: Argyle Corrections Group and Argyle Commercial Security Group.