Lenox to launch $275 million credit facility Thursday

By Sara Rosenberg

New York, March 26 - Lenox Group Inc. is scheduled to hold a bank meeting on Thursday to launch its proposed $275 million credit facility, according to a market source.

UBS is the lead bank on the deal.

Details on the structure of the facility are not available as of yet, the source added.

Proceeds will be used to refinance the company's existing revolver and term loan, $106.1 million as of March 23, and to fund ongoing working capital requirements.

Closing on the new deal is expected to occur before April 30.

Earlier this month, the company said that it was in discussions with the agent under its existing credit facility as well as with other potential lenders regarding a modified or new credit facility.

These discussions were taking place because the company's previously announced waiver of non-compliance with its leverage and interest coverage ratios expires on April 30.

"We are pleased to be able to put this loan agreement in place on terms that will provide the company with greater flexibility to finance its ongoing operations. We are also making progress on a number of critical fronts to improve our operations, business opportunities and financial performance. This commitment letter, in combination with our new business plan, puts us closer to establishing a more stable financial platform for the company's growth and sustained profitability," said Marc L. Pfefferle, interim chief executive officer, in the release.

Lenox is an Eden Prairie, Minn.-based tabletop, collectible and giftware company.

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