Summer Infant gets $77.5 million credit facility via BofA, Pathlight

By Marisa Wong

Morgantown, W.Va., June 28 – Summer Infant, Inc. announced it closed on a $60 million asset-based revolving credit facility with Bank of America, NA and a $17.5 million term loan with Pathlight Capital LLC.

The fully committed credit facility provides incremental liquidity and more flexible covenants compared to the company’s existing agreements, according to a press release.

The $60 million revolver with BofA has a $5 million letter-of-credit sub-facility.

The revolver matures on June 28, 2023 and accrues interest at Libor plus an applicable margin of 175 basis points or 200 bps, depending on average quarterly availability. As of June 28, the Libor rate was 4.125%.

The revolver will be secured by a first priority lien on the company’s assets, other than assets secured by the term loan.

The $17.5 million term loan with Pathlight will also have a five-year term and accrue interest at Libor plus 900 bps. As of Thursday, the interest rate on the term loan was 11.336%.

The term loan amortizes at 5% per year, payable quarterly, beginning Dec. 1.

The term loan will be secured by a first priority lien on the company’s intellectual property, equipment and interests in its subsidiaries and a second priority lien on the revolving credit facility assets.

Proceeds from the credit facility will be used to refinance existing debt, pay any transaction costs and to finance ongoing working capital needs.

The company’s prior credit facility had totaled $75 million, with a blended average interest rate in the first quarter of 2018 of 5%, the release noted.

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

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