Everlast accomplishes redemptions & prepayment of Series A Preferred Stock
08 Feb '06
3 min read
Everlast Worldwide Inc, manufacturer, marketer and licensor of sporting goods and apparel under the Everlast brand name, reported the entire redemption of its outstanding $20 million Series A Preferred Stock and related rights and privileges, including the elimination of the profit-sharing mechanism, the retirement of its two board of director seats, and the prepayment of its outstanding $6 million in notes payable to one of the former Series A preferred stockholders.
The redemptions and prepayment was accomplished by the company, and all its wholly-owned subsidiaries, entering into a $25 million Senior Secured four-year Term Facility with Wells Fargo Century.
Under the terms of the facility, the company redeemed its Series A Preferred Stock and prepaid notes payable, and all rights and privileges thereof, for an aggregate amount of $22.7 million.
The remaining $2.3 million of financing from the Term Facility was used to pay for financing and professional costs associated with the Term Facility. It requires quarterly principal installments of $635,000, commencing April 30, 2006, with a balloon of $15.5 million due December 31, 2009, along with monthly interest on the related outstanding principal at prime plus 1 percent (currently 8.25 percent).
The Term Facility has customary covenants in place, including a minimum fixed-charge financial covenant ratio, and excess cash-flow recapture. It is secured by all tangible and intangible assets of the Company and its wholly-owned subsidiaries, as defined.
marketing@alchempro.com
