Build-A-Bear Workshop Inc. (NYSE: BBW) entered into a third amendment to its revolving credit facility on December 31, 2024, according to a company statement.

The amendment increased the base borrowing amount from $25 million to $40 million while maintaining an accordion feature that allows the facility to expand up to $50 million. The company also secured reduced interest rates on borrowings and extended the maturity date to December 31, 2030.

The amended credit agreement maintains PNC Bank, National Association as the agent for lenders. The facility includes a borrowing base formula tied to eligible credit card receivables, inventory, and certain other assets. Swingline loans remain capped at $5 million, with standby or commercial letters of credit also limited to $5 million.

Build-A-Bear reduced the facility fee on undrawn commitments from 0.25% to 0.20%. The company retained an increase option allowing the facility to grow by up to $10 million with lender consent.

Borrowings under the facility bear interest based on either a base rate or a secured overnight financing rate reference rate, plus applicable margins. The revolving advances remain secured by a first priority lien on substantially all personal property of the company and its U.S. and Canadian subsidiaries.

The original credit agreement was established in August 2020 and previously amended in December 2021 and November 2022.