Brown Jordan International, Inc. Announces the Completion of New Financing Transactions.Business Editors POMPANO BEACH Pompano Beach (pŏm`pənō), city (1990 pop. 72,411), Broward co., SE Fla., on the Atlantic coast and the Intracoastal Waterway; inc. 1908. It is a resort city with ocean beaches, excellent fishing, and a harness-racing track. , Fla.--(BUSINESS WIRE)--April 1, 2004 Brown Jordan International, Inc. ("Company") announced today that it has completed two financing transactions which, in the aggregate, provide the Company with $225 million of new financing. Upon the closing of the transactions, approximately $189 million was drawn under the credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . Proceeds from the transactions were used to repay the Company's previously existing senior secured lenders ("former lenders") in full. Interest costs under the new credit facilities will approximate those of the former credit facility; however, fixed charges will be substantially reduced, providing the Company with improved liquidity for its growth plans. The Company had been operating under an extended forbearance agreement with its former lenders while the Company arranged new financing. The new financing consists of: (i) $90 million asset based revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility ("Revolver"); and (ii) $135 million senior secured second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the notes ("Notes") placed by Imperial Capital, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Both the Revolver and the Notes are three year commitments. The terms of the Revolver provide borrowing availability based on an 85% advance rate against eligible accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and a 60% to 65% advance rate against eligible inventory, depending upon the time of the year. Borrowings under the Revolver carry interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 225 basis points. Substantially all of the Company's accounts receivable, inventory, fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and intangibles have been pledged as collateral for the Revolver on a first lien basis. The Company must maintain a minimum of $5 million of available borrowing capacity at all times, and, provided that the Company maintains a minimum of $9 million of available borrowing capacity, the facilities do not have financial covenants. As of the closing date of the transaction, the Company had approximately $61 million outstanding under the Revolver (including letters of credit) and approximately $19 million available to be drawn. The terms of the Notes provide for $135 million of term borrowings, an interest rate of LIBOR plus 900 basis points and no financial covenants. The Notes are secured by a second lien on substantially all of the Company's accounts receivable, inventory, fixed assets and intangibles, and a first lien on the Company's capital stock as well as that of all domestic subsidiaries. There is no required amortization on the Notes through maturity. Commenting on the financing transactions, John W. Frederick, the Company's Executive Vice President and Chief Administrative Officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive , said "The new financing will provide the Company with additional liquidity to grow our businesses as well as increased flexibility resulting from having no expected financial covenants or senior debt amortization for the next three years." Bruce R. Albertson, the Company's Chief Executive Officer, commented "These transactions demonstrate the confidence that the financing community has in our vision and growth plan. We now have three years to focus primarily on developing exciting new products and improving our operational efficiencies." The Company also announced today that on March 18, 2004 it made the interest payment due to the holders of its 12 3/4% Senior Subordinated Notes that was originally due on February 17, 2004. About Brown Jordan International Brown Jordan International, Inc., designs, manufactures and markets retail and contract furnishings under the brand names Brown Jordan, Tommy Bahama Tommy Bahama is a licensed line of clothing that markets high-end tropical-themed wear amongst other clothing and household goods. The company sells these products through its own chain of retail outlets in Canada and the United States, and through other retailers. , Pompeii, Winston, Vineyard, Molla, Tradewinds, Stuart Clark Stuart Rupert Clark (born 28 September 1975, Sutherland, New South Wales) is an Australian Test cricketer who plays for the New South Wales Blues and Hampshire. He bowls right-arm fast medium deliveries. , Werner Woods, Casual Living, Southern Wood Products, Loewenstein, Charter, Lodging by Charter, Woodsmiths, Wabash Valley, Texacraft, and Tropic Craft. Brown Jordan International's corporate office is located in Pompano Beach, Florida Pompano Beach is a city in Broward County, Florida, along the coast of the Atlantic Ocean just to the north of Fort Lauderdale. The Nearby Hillsboro Inlet forms part of the Atlantic Intracoastal Waterway. As of 2006, the U.S. with offices and manufacturing facilities located both domestically and internationally. Brown Jordan International, Inc. is an affiliate of Trivest Partners, L.P., a private investment firm, which is a leading provider of equity for middle market corporate acquisitions, recapitalizations and growth capital financings. Since its founding in 1981, Trivest has sponsored more than 115 acquisitions and recapitalizations, totaling approximately $2.0 billion in value. Trivest recently closed its third institutional investment fund, Trivest Fund III, L.P., with $316.1 million in total commitments. For more information, please visit http://www.trivest.com |
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