14226 Thu, 04/10/2008 - 10:54am
NEW YORK–Martha Stewart Living Omnimedia and its new subsidiary, MSLO Emeril, have obtained a $30 million loan from Bank of America.
The details of the loan appeared in a filing with the U.S. Securities and Exchange Commission made Tuesday. One week ago, the Stewart organization completed its acquisition of Emeril Lagasse’s business—including the celebrity chef’s television programming, cookbooks, Web site, and licensed kitchen and food products—for $50 million at the closing. The purchase price could reach $70 million if certain performance targets are met by 2011 and 2012.
The SEC filing said the loan agreement requires the Stewart/Emeril organization to repay the loan in principal installments of $1.5 million plus accrued interest on the last day of each calendar quarter beginning June 30. The balance of the loan, principal plus interest, is due on Dec. 7, 2012.
The filing also said $5 million of the initial purchase price was paid on April 2 in the form of 674,854 shares of MSLO common stock. According to an MSLO statement issued last week, the remaining $45 million is in cash.