Furniture Brands restates $250 million revolver, extends maturity

By Angela McDaniels

Tacoma, Wash., May 2 - Furniture Brands International, Inc. amended and restated its credit facility on Wednesday, extending the maturity date to April 27, 2016.

The amended and restated credit facility provides for a $250 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus 225 basis points to 300 bps, and the commitment fee is 37.5 bps or 50 bps, both depending on availability. The initial pricing is Libor plus 275 bps with a 37.5 bps commitment fee.

There is a $100 million sublimit for letters of credit.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Capital Finance, LLC are the bookrunners and joint lead arrangers. Bank of America, NA and Wells Fargo Capital Finance are the syndication agents. JPMorgan Chase Bank, NA is the administrative agent.

The amended and restated credit agreement also:

• Reduced the threshold amount of excess availability requirement that triggers the cash dominion and weekly borrowing base reporting covenants to $42 million from $75 million;

• Reduced the threshold amount of excess availability requirement that triggers the fixed charge coverage ratio covenant to $35 million from $62.5 million; and

• Removed the requirement relating to the underfunded status of the company's pension plan and replaced it with a requirement that the company make all minimum required pension contributions when due.

The facility continues to be guaranteed by substantially all of the company's domestic subsidiaries; to be secured by the loan parties' accounts receivable, inventory and cash deposit and securities accounts; and to be subject to a borrowing base calculation that may cause the availability to fluctuate.

As of Monday, the St. Louis-based furniture company had drawn down $77 million under the facility and had about $8.5 million of letters of credit outstanding.

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