Summer Infant amends $75 million revolver, loan via Bank of America

By Susanna Moon

Chicago, Dec. 14 – Summer Infant, Inc. amended its $75 million credit agreement last Thursday with Bank of America, NA as agent and Bank of America Merrill Lynch as lead arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The facilities consist of a $60 million asset-based revolving credit facility, with a $10 million letter of credit sub-line facility, a $5 million first-in, last-out revolving credit facility and a $10 million term loan facility.

Interest on the revolving loans now is initially Libor plus 250 basis points, with the spread ranging from 200 bps and 250 bps based on availability. Interest on the term loans is Libor plus 425 bps.

Also, an occurrence of an event with a “material adverse effect” on the company no longer constitutes as an event of default under the loan agreement.

The loan amendment also amends the maximum leverage ratio financial covenant and revises expenses and fees.

The maximum leverage ratio was amended to 6 times for the fiscal quarter ending Jan. 2, 2016, stepping down to eventually 3.75 times for the quarter ending Dec. 30, 2017 and for each quarter after that.

Previous amendment

The company said on April 22, 2015 that it entered into a $75 million amended and restated loan and security agreement on April 21 with Bank of America as agent.

The revolving loans and term loan mature on April 21, 2020.

Interest on the revolving loans ranged from Libor plus 175 bps to 225 bps. Interest on the term loan was Libor plus 400 bps.

The company was required to repay the term loan in quarterly installments of $500,000 beginning July 1. The company was required to prepay the term loan in an amount equal to 50% of its excess cash flow at the end of each fiscal year beginning with the fiscal year ending Jan. 2, 2016.

The financial covenants required maintaining a fixed-charge coverage ratio of at least 1.0 to 1.0 for the 12 consecutive fiscal months most recently ended at the time.

Woonsocket, R.I.-based Summer Infant designs, markets and distributes juvenile health, safety and wellness products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.