Maidenform completes refinancing of credit facility
19 Jun '07
2 min read
Maidenform Brands Inc a global branded marketer of intimate apparel announced that the Company has completed the refinancing of its existing credit facility with a new $150 million credit facility, reflecting a reduction of total debt outstanding of $10 million since the end of the first quarter of 2007.
The new credit facility includes a 7-year Term Loan of $100 million and 5- year revolving line of credit of $50 million. Interest rates are determined on a pricing grid based on Maidenform's total debt to EBITDA ratio.
Borrowings under this new facility can be either at prime rate or at LIBOR plus a premium. The initial LIBOR rate will include a premium of 1.25% with further reductions available upon the achievement of certain financial ratios.
"We are extremely pleased with the terms of our new credit facility, which reflects the lending community's confidence in Maidenform's strengthening financial performance, as well as in our strategic growth and cost management plans going forward," stated Dorvin Lively, Executive Vice President and Chief Financial Officer of Maidenform.
"In addition to expanding the maturity dates of our revolver and Term Loan and providing flexibility for expanding the credit facility, this new facility will reduce our annual interest expense."
Caisse de depot et placement du Quebec is the sole lead arranger and Bank of America, N.A. is a joint lender and administrative agent for the new credit facility.