Rowe Comp apply commitment letter with GE Comm Finance
26 Nov '05
2 min read
Leading home furnishing retailer Rowe Companies announced that the Company has executed a commitment letter (the "GE Commitment Letter") with GE Commercial Finance for up to $60,000,000 of secured financing.
Pursuant to the GE Commitment Letter, the Company expects GE Commercial Finance to provide the Company with a senior secured revolving credit facility of up to $50,000,000 and arrange a senior secured Tranche B loan of up to $10,000,000.
The GE Commitment letter, including commitments obtained for the Tranche B Loan, are subject to various conditions, including but not limited to completion of business and legal due diligence to the satisfaction of GE Commercial Finance and Tranche B lenders, respectively, and execution and delivery of final legal documentation.
Proceeds of the financing are expected to be used to refinance certain of the Company's existing debt, to provide for working capital and general corporate purposes, and to pay fees associated with the refinancing.
"I'm pleased that a world class company such as GE Commercial Finance recognizes the value have created here in Rowe Furniture and Storehouse," said Gerald M. Birnbach, Chairman and President. "Upon funding, expect to have the resources necessary to continue the growth in Storehouse, fund working capital requirements and undertake initiatives to grow revenue and improve profitability."
The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture Inc, a major 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 68 retail home furnishings stores.
Storehouse makes good design accessible by selling an edited assortment of casual, contemporary home furnishings through its stores located in the Southeast, Southwest and Mid- Atlantic markets, its catalog and over the internet.
marketing@alchempro.com
