Furniture Brands secures $250 million credit facility
Heath E. Combs -- Furniture Today, September 27, 2012
ST. LOUIS — Furniture Brands International said it has closed on a new five-year secured credit facility with a $200 million asset-based loan and a $50 million secured term loan.
GE Capital, Bank of America, and Wells Fargo provided the majority of the facility.
The loan contains a provision that allows it to expand by up to $50 million. Both the asset-based and the term loan have a maturity date of September 2017 and do not have any principal amortization.
"These facilities will allow our company to continue our future growth and execute on initiatives that will improve our competitiveness and financial performance," CEO Ralph Scozzafava said in a press release.
The facilities repay the amounts outstanding under the existing asset-based loan, and after closing costs, result in over $90 million of excess borrowing availability, the release said.
The company's old credit agreement was an asset-based revolving facility provided with a commitment of $250 million and had a maturity date of April 27, 2016.