Chatwins Group Inc. Makes Announcement.PITTSBURGH--(BUSINESS WIRE)--Oct. 30, 1998--Chatwins Group Inc., a privately held corporation Noun 1. privately held corporation - a corporation owned by a few people; shares have no public market close corporation, closed corporation, private corporation , announced today that the Company and NationsBank Business Credit (NationsBank) executed a financing and security agreement (the Agreement) for NationsBank to provide the Company with a 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 of up to $40.0 million (the NationsBank Facility), including a $5.0 million letter of credit facility. Availability under the NationsBank facility is subject to a borrowing base limitation which is calculated as the aggregate of specified precentages of eligible receivables and inventories. Interest under the NationsBank Facility is determined by reference to various rates including the NationsBank prime rate, Federal Funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. and LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , each plus a related margin. The Agreement includes various representations, warranties and convenants by the Company and gives NationsBank various rights and remedies in the event of default. Proceeds of the NationsBank Facility will be used to, among other things, refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the Company's current revolving credit facility with Congress Financial Corporation and fund the Company's Nov. 1, 1998 $3.25 million semiannual interest payment on its Senior Notes. |
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