Collins & Aikman tables plans to amend, restate credit facility

By Sara Rosenberg

New York, May 7 - Collins & Aikman Products Co., a wholly owned subsidiary of Collins & Aikman Corp., decided to postpone its efforts to amend and restate its senior credit facility to get more favorable terms than the existing loan, including replacing its shorter maturing term loans with longer maturing term loans.

Furthermore, the company decided to postpone its proposed $500 million high-yield offering consisting of about $400 million of new senior subordinated notes and a $100 million add-on to an existing issue of senior notes.

The company decided to put these financing plans on hold "in light of material adverse changes in prevailing U.S. Treasury and high-yield market conditions," a company news release said.

"Products will continue to monitor and assess market conditions," the release added.

The company announced its plans to amend and restate its loan and sell bonds just this past Wednesday. Proceeds from the bond deal were going to be used to redeem 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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