Collins & Aikman looks to amend, restate its credit facility once again

By Sara Rosenberg

New York, Aug. 3 - Collins & Aikman Products Co. plans on amending and restating its senior credit facility, according to a company news release.

There were no further details contained in the release; however, in a 10-Q filed with the Securities and Exchange Commission on Tuesday, Collins & Aikman stated "The company anticipates needing to modify the covenants under its senior secured credit facility in the near future to provide it with more flexibility."

The Troy, Mich., automotive interior components company is also looking to sell about $400 million of senior subordinated notes due 2012 with proceeds earmarked for the redemption of all $400 million in principal amount of the 11½% senior subordinated notes due 2006. The bond offering is not conditioned on the amendment and restatement of the credit facility.

In May, the company announced plans to amend and restate its senior credit facility to get more favorable terms than the existing loan, including replacing shorter maturing term loans with longer maturing term loans. At the same time, the company announced plans to sell about $400 million of senior subordinated notes and about $100 million of senior notes.

But, about two days after making the announcement, Collins & Aikman opted to postpone its amendment and restatement efforts as well as to postpone its bond offering "in light of material adverse changes in prevailing U.S. Treasury and high-yield market conditions," a May news release disclosed.

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