Perry Ellis to obtain $110 million revolver

By Sara Rosenberg

New York, Feb. 5 - Perry Ellis International Inc. received a commitment for a new $110 million three-year revolver from Congress Financial Corp., according to a company spokesperson.

Other banks will be participating in the revolver, however, according to the spokesperson, there will be no bank meeting held, rather the company will line up the banks, which for the most part will be the same banks that participated in the existing $60 million revolver.

The revolver's interest rate can range from Libor plus 200 to 275 basis points, depending on the company's funded debt to EBITDA and availability, the spokesperson told Prospect News.

About $32 million of the proceeds will be used to help fund the acquisition of Salant Corp. for $91 million, comprised of approximately $52 million in cash and approximately $39 million worth of newly issued Perry Ellis common stock. The remaining proceeds will be used for working capital and general corporate purposes.

Once the acquisition is closed, in around May or June, the Miami men's clothing company anticipates a total debt structure consisting of $100 million of 12¼% senior subordinated bonds outstanding, $57 million of senior secured notes outstanding, an $11 million mortgage and the revolver borrowings that are estimated to be in the $30 to $35 million range, company officials said in a conference call.

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