Xcel Brands completed a refinancing of its senior debt with Bank Hapoalim. The new credit facility refinances and consolidates approximately $27.875 million of senior debt that the company previously held with Bank Hapoalim through its subsidiaries IM Brands, JR Licensing and H Licensing, and extends the term of such consolidated debt facility through January 1, 2021.
Some of the key terms of the new credit facility are:
- $27.875 million of senior secured debt under Xcel Brands, guaranteed by certain of Xcel’s subsidiaries
- Interest rate is fixed at 5.10%
- Scheduled Amortization of $2.625 million for the remainder of 2016, $4 million per year each year from 2017 through 2020, plus an annual cash flow sweep of 10% of the company’s cash flow (as defined in the credit facility), and the balance due on January 1, 2021
“We are pleased to extend our debt facility with Bank Hapoalim and appreciate the support they have provided to us as a financing source for the company,” said Robert W. D’Loren, chairman and CEO of Xcel. “The amended facility provides us with a long-term financing solution and increased financial flexibility as we continue to have one of the lowest leverage ratios in our industry. We believe the completion of this transaction is an important step that better positions Xcel to execute on our strategic initiatives to drive long-term growth and maximize value for our shareholders.”
Xcel Brands is a brand development and media company engaged in the design, production, licensing, marketing and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands.