Chromcraft Refinances with New First Capital Facility
Chromcraft Revington announced that it refinanced its credit facility and entered into a new three year secured revolving credit facility with First Capital of up to $9 million based upon eligible accounts receivable and inventory of the company.
The new facility replaces the company’s prior $5 million credit facility with Gibraltar Business Capital. The company believes the new facility provides several important benefits as compared to the prior credit facility, including: increased availability and borrowing capacity due in part to the inclusion of inventory in the borrowing base; an extended term of three years; more favorable net income (loss) financial covenants; and the ability to obtain a mortgage or synthetic lease on the company’s Senatobia, MS plant subject to certain limitations.
The company also believes the new facility provides the company with the borrowing capacity to meet the company’s anticipated cash operating needs for at least the next twelve months and, in addition, provides greater flexibility than the prior credit facility.
West Lafayette, IN-based Chromcraft Revington businesses design, manufacture and import residential and commercial furniture marketed primarily in the U.S.