FBI gets financing, waiver
By Furniture Today Staff -- Furniture Today, July 9, 2007
St. Louis — Furniture Brands International has obtained a $600 million revolving credit facility and has received a waiver on compliance with financial covenants on other debt, the manufacturer and importer said in a regulatory filing last week.
Furniture Brands said it entered into a commitment letter with J.P. Morgan Securities and J.P. Morgan Chase Bank for the new revolving credit facility. It will be used in part to refinance the company's existing revolving credit facility.
As a condition of obtaining relief from covenants on other debt, the company said it will pay an estimated $164.7 million in principal and accrued interest on certain notes.
The company had faced a June 30 deadline for compliance with the debt covenants, which required certain ratios of earnings to debt. It obtained a waiver on certain provisions until Aug. 15.
