Summer Infant refinances revolver, gets new $15 million term loan

By Toni Weeks

San Luis Obispo, Calif., Feb. 28 - Summer Infant, Inc. announced in a press release that it has refinanced its revolving credit facility and obtained a new term loan.

The company said it arranged an $80 million asset-based revolver with Bank of America, NA. The facility expires in 2018, and borrowings bear interest at Libor plus 175 basis points to 225 bps.

Summer Infant also obtained a new $15 million term loan with Salus Capital Partners, LLC as administrative agent and collateral agent. The loan matures in 2018 and bears interest at Libor plus 1,000 bps with a 1.25% Libor floor. Under the agreement, the principal of the term loan will be repaid in quarterly installments of $375,000 beginning with the quarter ending Sept. 30, 2013.

Both credit agreements include covenants relating to minimum consolidated EBITDA and fixed-charge ratio as well as customary affirmative and negative covenants.

"These two agreements significantly lower our borrowing costs and provide financial flexibility as we execute on our long-term growth strategy," chief executive officer Jason Macari said in the release.

Woonsocket, R.I.-based Summer Infant designs, markets and distributes branded durable juvenile health, safety and wellness products primarily to large U.S. retailers.

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