SUMR Brands entered into a third amended and restated loan and security agreement with Bank of America. The new credit facility consists of a $40 million ABL, a $7.5 million term loan and a $2.5 million FILO loan, for aggregate availability of $50 million.
This agreement replaces SUMR’s prior $48 million asset-based revolving credit facility with Bank of America and its $17.5 million term loan with Pathlight Capital.
The credit facility provides adequate liquidity for SUMR with reduced interest rates compared with the company’s prior financing agreements. After paying off existing debt, the company had approximately $9 million in availability under the credit facility.
“We’re pleased to announce that the company has successfully concluded the refinancing of its debt, entering into a new agreement with Bank of America that establishes a solid foundation to support ongoing growth, working capital needs and also significantly reduces future interest expense,” Stuart Noyes, interim CEO of SUMR, said. “Operating under this new credit facility is expected to lower our interest cost by approximately $2.0 million annually based on current borrowing levels.
“This year we have made great progress improving operational efficiencies throughout the organization and the company returned to profitability. The new credit facility represents an important milestone for SUMR as we build on structural improvements and position the company for growth. We will continue to strategically invest in key business drivers, such as e-commerce expansion, innovative product development, and results-based marketing, while further reducing outstanding debt. We appreciate Bank of America’s partnership and validation of the transformative measures taken by the company this year and look forward to making continued enhancement to the business to maximize shareholder value.”
SUMR Brands is a Rhode Island-based global provider of infant and juvenile products.
