Goody's Family Clothing reported that it has entered into a five-year $130m loan and security agreement with The CIT Group/Business Credit, Inc acting as agent for a syndicate of lenders. The new loan and security agreement replaces the company's $115m credit facility that was to expire on June 30, 2001. The new facility provides for cash borrowings for general corporate purposes, including a $95m sub-facility for the issuance of letters of credit. The new facility is secured by the company's cash, accounts receivables and inventories. Borrowings under the new facility are limited by collateral formulas based principally upon the company's eligible inventories. Borrowings would bear interest at either LIBOR plus an applicable margin or the prime rate.