Ethan Allen draws $75 million from revolver to redeem 5 3/8% notes

By Toni Weeks

San Luis Obispo, Calif., March 19 – Ethan Allen Interiors Inc. wholly owned subsidiary Ethan Allen Global, Inc. borrowed $75 million from its $150 million senior secured credit facility to help redeem its outstanding $129.4 million of 5 3/8% senior notes due Oct. 1, 2015 on Wednesday, according to a press release.

The company announced in October that it had obtained a new credit facility, which would be used in part to redeem the notes. The facility provides for a revolving credit line of up to $115 million, subject to borrowing base availability, and a term loan of up to $35 million.

Ethan Allen also used $61 million in cash to fund the redemption.

The company will incur a $3.7 million pre-tax charge from the early redemption during the quarter ending March 31, the filing noted.

U.S. Bank NA, Corporate Trust Services is the trustee.

Ethan Allen is a Danbury, Conn.-based interior design company and manufacturer and retailer of quality home furnishings.

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