Appliance Recycling Centers of America Inc. announced that the company has entered into a one-year renewal of its credit agreement with PNC Bank, National Association (PNC), which includes a senior secured revolving line of credit and term loan. The extension of the credit agreement, which was signed on January 22, 2016, extends the agreement to January 31, 2017. Under terms of the extension, ARCA may borrow an aggregate principal amount of up to $15 million under the revolving line of credit, the same amount allowed under the original three-year credit agreement signed on January 24, 2011.

The Company intends to use the revolving line of credit for ongoing working capital needs and general corporate purposes. The extension of the credit agreement also reset the financial covenants.