Furniture Brands Announces New Credit Facility
ST. LOUIS, Mo.-Furniture Brands International said it has successfully closed on a new five year secured credit facility comprised of a $200 million asset-based loan and a $50 million secured term loan. These facilities repay the amounts outstanding under the existing asset-based loan, and after associated closing costs, result in over $90 million of excess borrowing availability.
GE Capital, Bank of America, and Wells Fargo provided the majority of the facility on a fully committed basis and will serve as joint lead arrangers for the $200 million facility, according to Furniture Brands. Additionally, this asset-based loan contains an accordion provision that, subject to certain conditions, allows Furniture Brands to expand the asset-based loan by up to $50 million. Both the asset-based loan and the term loan have a maturity date of September 2017 and do not have any principal amortization.
"We are very pleased to have opportunistically accessed the capital markets with a financing package that provides for increased borrowing capacity and greater financial flexibility," said Ralph Scozzafava, CEO of Furniture Brands. "We are appreciative of the support from our new and existing lenders and are pleased to have partnered with such a distinguished group of financial institutions. These facilities will allow our company to continue our future growth and execute on initiatives that will improve our competitiveness and financial performance."