E Com to merge with retail fragrance company Model
29 Dec '07
3 min read
The Merger Agreement also requires Model to refinance debt owed by Model to an affiliate. The refinancing is to be through a $50 million three-year term loan from the affiliate and, if needed, a transfer of inventory from Model to the affiliate to pay any remaining balance. The new affiliate loan will be subordinated to the new secured credit facility described below.
The consummation of the Merger is subject to certain conditions, including approval by the holders of a majority of the issued and outstanding shares of E Com, expiration of the anti-trust waiting period under the Hart Scott Rodino Act, approval by NASDAQ of the listing of the shares to be issued, and the availability of a new $280 million secured credit facility to replace E Com's and Model's existing third party credit facilities.
The new credit facility is expected to provide sufficient funds to enable E Com to accelerate its growth by adding additional Perfumania retail stores.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
