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Delta Apparel gets $145 million five-year amended and restated loan
By Angela McDaniels
Tacoma, Wash., June 3 - Delta Apparel, Inc. entered into a $145 million amended and restated credit facility due May 26, 2016, according to an 8-K filing with the Securities and Exchange Commission.
The initial interest rate is adjusted Libor plus 175 basis points. The margin can range from 175 bps to 225 bps, depending on average alternate excess availability.
There is a $25 million sublimit for letters of credit and a $55 million accordion feature.
Subsidiaries M.J. Soffe, LLC, Junkfood Clothing Co., To The Game, LLC, Art Gun, LLC and TCX, LLC are co-borrowers.
Wells Fargo Bank, NA is the administrative agent. Wells Fargo Capital Finance, LLC is the arranger. Bank of America, NA is the syndication agent. Wells Fargo Capital and Bank of America Merrill Lynch are the bookrunners.
The credit facility includes the financial covenant that if the amount of availability falls below an amount equal to 12.5% of the lesser of the borrowing base or $145 million, the company's fixed-charge coverage ratio for the preceding 12 month period must not be less than 1.1 to 1.0.
The company entered into the facility on May 27.
Proceeds may be used for permitted acquisitions and for general operating, working capital and other corporate purposes.
Delta Apparel is based in Greenville, S.C., and makes branded and private-label activewear apparel and headwear.
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