Tweeter amends loan to extend term, cut size and pricing

By Sara Rosenberg

New York, Nov. 24 - Tweeter Home Entertainment Group Inc. amended its credit facility, extending the term for two years to April 1, 2008, decreasing the size to $90 million from $110 million, lowering the pricing grid by 25 basis points on each tier and lowering the unused commitment fee by 7.5 basis points to 30 basis points, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

If average excess availability is greater than $24 million, then the interest rate is Libor plus 175 basis points. If average excess availability is greater than $15 million, but less than or equal to $24 million, then the interest rate is Libor plus 200 basis points. And if average excess availability is less than or equal to $15 million, then the interest rate is Libor plus 225 basis points.

Fleet Retail Group is the lead bank on the deal.

The amendment took effect on Monday.

Tweeter is a Canton, Mass., specialty consumer electronics retailer.

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