Furniture Brands Announces New Credit Facility
September 27, 2012,
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.