Furniture Brands International Announces New Credit Facility Comprised of a New $200 Million Asset-Based Loan and a $50 Million Term Loan

Furniture Brands International

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.