Daily News: October 23, 2017

BofA Amends Summer Infant Facility Following Toys “R” Us Bankruptcy

In response to the Toys “R” Us Chapter 11 filing, Summer Infant, a manufacturer of infant and baby products, amended its existing credit agreement to allow for greater flexibility.

According to a related 8-K filing, Bank of America served as administrative agent for the transaction, and Merrill Lynch was sole lead arranger and sole bookrunner.

TRU’s bankruptcy filing resulted in delayed shipments to Babies “R” Us and had a negative effect on net revenue by approximately $2.3 million during Q3/17. As part of the amendment, Bank of America waived any loan violations that may have occurred due to over advances made after Toys “R” Us receivables were no longer deemed “eligible accounts.” The new agreement amendment also provides additional flexibility to Summer Infant in light of the ongoing insolvency proceeding.

Mark Messner, CEO, commented, “Going forward, we are taking the appropriate steps to serve our customers, actively manage our inventory and roll out new products for the fourth quarter. We’re pleased that, once again, we were supported by all institutions participating in our credit agreement.”

The estimated impact of the Toys “R” Us bankruptcy on Summer Infant’s third quarter is based on its management’s preliminary financial analysis, but the final statements may still change after the full financial audit for the quarter is tabulated.