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New five year Credit Facility provides significant incremental availability and financial flexibility through 2017
Over $90 million of excess availability at close after repayment of amounts owed under existing facility and transaction costs
Financing provides strong liquidity to fund business improvements and growth initiatives
ST. LOUIS, Sept. 27, 2012 (GLOBE NEWSWIRE) -- Furniture Brands International (NYSE:FBN) has successfully closed on a new five year secured credit facility comprised of a new $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. 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. Pathlight Capital, LLC, a portfolio company of Sycamore Partners, will serve as the Administrative and Collateral Agent of the new $50 million secured term loan and the Junior Capital Division of Wells Fargo Capital Finance, which is a division of Wells Fargo, will act as the Documentation Agent. Both the asset-based loan and the term loan have a maturity date of September 2017 and do not have any principal amortization.
Mr. Ralph Scozzafava, Chairman and CEO, stated, "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. 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."