Tile Shop Announces Commitment for $100 Million Secured Credit Facility
Tile Shop Holdings, a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories, today announced the closing of a $100 million senior secured credit facility. The new facility is comprised of a five-year $25 million term loan along with a $75 million revolving line of credit. The Company expects to eliminate approximately $70 million of outstanding notes payable with borrowings under this credit facility. Borrowings under the facility will bear interest at either a base rate plus 0.75% to 1.25% or a LIBOR-based rate plus 1.75% to 2.25%, at the option of the Company, subject to the leverage ratio of the Company's operating subsidiary, The Tile Shop, LLC.
The undrawn balance of the facility may be used for working capital purposes and to support the Company's growth, including plans to open at least 13 new stores during 2012 and not less than 15 new stores in 2013.
“This credit facility provides us with additional financial flexibility to support our expected growth in the coming years,” said Timothy Clayton, Chief Financial Officer. “We appreciate the support of our bank group in completing this significant transaction.”
The Company's bank group was led by Bank of America, N.A., as Administrative Agent, Bank of America Merrill Lynch, as Sole Lead Arranger and Sole Book Manager, and The Huntington National Bank as Syndication Agent.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Advertisement
