Daily News: March 1, 2013

BofA, Salus Provide Financing to Summer Infant


Summer Infant, a designer, marketer and distributor of branded durable juvenile health, safety and wellness products, said it has entered into a new fully underwritten loan and security agreement with Bank of America that expires in 2018 and provides for an $80 million asset-based revolving credit facility. The loan bears interest, at the company’s option, at a base rate plus 0.25% to 0.75% or at LIBOR plus 1.75% to 2.25%. The agreement includes covenants relating to minimum consolidated EBITDA and fixed charge ratio, as well as customary affirmative and negative covenants.

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Summer Infant also entered into a new $15 million term loan agreement with Salus Capital Partners as administrative agent and collateral agent. The principal of the term loan will be repaid, on a quarterly basis, in installments of $375,000, commencing with the quarter ending September 30, 2013, and matures in 2018. The term loan bears interest at an annual rate equal to LIBOR, plus 10%, with a LIBOR floor of 1.25%.

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The term loan contains customary affirmative and negative covenants substantially the same as the Bank of America agreement.

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“The refinancing of our credit facility is a major milestone for Summer Infant,” said Jason Macari, chief executive officer of Summer Infant. “We were encouraged by the level of lender interest and support as we considered several refinancing options, and selected Bank of America and Salus Capital as the best long-term solutions. These two agreements significantly lower our borrowing costs and provide financial flexibility as we execute on our long-term growth strategy. We are focused on advancing the key strategic drivers of our business, including innovation, global expansion, brand building and operational excellence.”