Collins & Aikman seeks amendment, restatement of loan to extend maturities, get better terms

By Sara Rosenberg

New York, May 5 - Collins & Aikman Products Co., a wholly owned subsidiary of Collins & Aikman Corp., is negotiating an amendment and restatement of its senior credit facility that would contain more favorable terms than the existing loan, according to a company news release.

For example, the company is hoping to replace its shorter maturing term loans with longer maturing term loans.

Furthermore, the company announced on Wednesday that it plans to sell about $400 million of senior subordinated notes and about $100 million of senior notes, with proceeds earmarked for the redemption of the $400 million 11½% senior subordinated notes due 2006 and to reduce borrowings under the existing senior credit facility.

Collins & Aikman is a Troy, Mich., automotive interior components company.

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