Salus Capital Provides Hampshire Group Facility
Hampshire Group announced that the company refinanced its existing credit facility with Wells Fargo with a new $50 million, three-year credit facility from Salus Capital Partners. Proceeds from the Salus Capital facility will be used to finance working capital and for general corporate purposes.
The credit facility consists of a $3 million term loan and a $27 million revolving credit facility, with an accordion feature which permits an increase up to a $47 million revolving credit facility at the company’s option, subject to certain further conditions. The Salus Capital facility will provide Hampshire Group with significantly more liquidity as compared to Hampshire’s current financing arrangements.
“Salus Capital Partners brings significant experience in the apparel industry which will provide Hampshire Group the flexibility we need to navigate the current environment,” said Paul M. Buxbaum, chairman and CEO of Hampshire Group.
Hampshire Group along with its wholly owned subsidiaries, Hampshire Brands and Rio Garment S.A., is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points.