Ethan Allen Agrees To New $40M Credit Facility

DANBURY, Conn. (AP) — Home furnishings retailer Ethan Allen Interiors Inc. said Friday it has agreed to a new $40 million senior secured revolving credit facility.

The new three-year facility, which is provided by a syndicate led by JPMorgan, has an accordion feature that allows an increase to up to $60 million.

Ethan Allen said it has no current plans to use the facility for anything other than its outstanding letters of credit, which currently total $12.5 million.

"We continue to have good liquidity from our business operations and have significant flexibility under this new facility, including no encumbrances on the more than $300 million of value in the real estate owned by the company," said Chairman and Chief Executive Farooq Kathwari in a statement.

Ethan Allen shares rose 36 cents, or 3 percent, to close at $12.26 on Friday. The stock has traded between $6.98 and $34.02 during the past 52 weeks.