Press Release Source: Collectors Universe, Inc.

Collectors Universe to Seek New Credit Facility Of Up to $20 Million

Monday March 10, 7:01 am ET


NEWPORT BEACH, Calif., March 10 /PRNewswire-FirstCall/ -- Collectors Universe, Inc. (Nasdaq: CLCT - News), the leading provider of value-added grading and authentication services and products to dealers and collectors of high-end collectibles, today announced that the Company intends to seek a new bank credit facility or other institutional debt financing in an amount up to $20 million to be used primarily for auction advance lending. The Company also will be retaining the services of an investment banking firm to assist it in obtaining the new credit facility.

"It is our intention to use the borrowings that would be available under a new credit facility primarily to fund advances to consignors to auctions conducted by our Bowers & Merena Galleries, Lyn Knight Currency Auctions, Odyssey and Superior Sports Auctions divisions," said Michael Haynes, Chief Executive Officer of Collectors Universe. "We believe that providing this funding service to consignors will help us to attract additional and larger consignments of valuable collectibles that will enable us to increase the size of our auctions and enhance our revenues in the future. For example, we currently estimate that we could generate as much as $9.6 million of additional revenues annually if we could provide a consignment related advance program of $10 million."

Collectors Universe presently has access to an undrawn $1.5 million short-term credit facility with a commercial bank.