The Rowe Companies announced that it has entered into a modification of its existing credit agreement with General Electric Commercial Finance ("GE") governing the Company's senior secured revolving credit facility and Tranche B loan. The modification eliminates the requirement that the Company raise additional equity and increases the Company's current borrowing availability under the revolving credit facility by $3,000,000.
In connection with the modification, Gerald M. Birnbach, Chairman of the Board and President of the Company, and Sidney J. Silver, a director of the Company, provided limited guaranties of up to $1,500,000 each, secured by letters of credit with a third party financial institution in favor of the lenders.The Rowe Companies announced that it has entered into a modification of its existing credit agreement with General Electric Commercial Finance ("GE") #
A Current Report on Form 8-K describing the credit agreement modification and the terms of the guaranties in greater detail has been filed by the Company with the Securities and Exchange Commission.
Said Mr. Birnbach, "The increase in the borrowing availability and the elimination of a fixed time table for raising equity affords the Company additional time for implementing its turnaround plan and exploring growth capital alternatives. We are very appreciative of GE's willingness to work with the Company in this fashion."
The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc., amajor manufacturer of quality upholstered furniture serving the middle and upper middle market throughout the U.S.; and Storehouse, Inc., a multi-channel, lifestyle home furnishings business including 69 retail home furnishings stores.
Rowe Companies
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