Furniture Brands closes on new long-term debt facility
August 14th, 2007
— Furniture Today
$550 million agreement will give manufacturer-importer more flexibility
ST. LOUIS — Furniture Brands International has closed on a new $550 million long-term debt facility.
The big furniture maker and importer began negotiating for looser debt covenants earlier this year. The new facility allows for the issuance of letters of credit of up to $100 million.
Under the new facility, FBI said it has paid existing debt of $150 million and $150 million in corporate bonds. The new debt agreement is with J.P. Morgan Chase Bank.
“We made the decision several months ago to change our long-term debt structure to more closely match our long-term strategy and financial goals,” said FBI Chairman and CEO Mickey Holliman. “Our new facility was well over-subscribed by our participating financial institutions, and we are pleased to have brought it to conclusion. We expect this new facility to give us the capital structure and the flexibility we need to respond to market conditions and to accommodate our growth initiatives.”
FBI is the parent of Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.
Entry Filed under: Furniture Indonesia News
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