Hamilton Beach outlines structure on $450 million facility for spin-off

By Sara Rosenberg

New York, Sept. 13 - Hamilton Beach Inc. detailed its proposed $450 million senior secured credit facility that will be obtained in connection with its spin-off from Nacco Industries Inc. and subsequent merger with Applica Inc., according to an S-4 recently filed with the Securities and Exchange Commission.

Wachovia and UBS are the lead banks on the deal.

The facility consists of a $250 million revolver due 2011 and a $200 million term loan due 2012.

A portion of the revolver availability can be denominated in Canadian dollars to provide funding to the company's Canadian subsidiaries.

Amortization on the term loan will be quarterly principal payments in an amount equal to 1% per year, with the remaining balance to be paid at maturity.

Security for the revolver is a first lien on the inventory and accounts receivable of Hamilton Beach and a second lien on all other assets.

Security for the term loan is a first lien on all existing and after acquired assets owned by Hamilton Beach and a second lien on all of the collateral securing the obligations under the revolver.

Proceeds from the credit facility will be used to finance ongoing operations and growth, to repay Applica's and Hamilton Beach/Proctor-Silex's existing debt and to pay a $110 million cash dividend to Nacco.

Hamilton Beach is a Richmond, Va., small electric household appliance company.

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