Hartmarx obtains new $200 million revolver

By Sara Rosenberg

New York, Sept. 3 - Hartmarx Corp. obtained a new $200 million 31/2-year senior revolving credit facility, with a one-year renewal option. The loan also provides for a $50 million letter of credit sub-facility.

Congress Financial Corp. fully underwrote the revolver and syndication to other institutions is expected to be completed in the near future.

Interest on the loan, which is based on Libor and the level of excess availability, is approximately 4.5%, compared to 6.75% under the company's previous facility.

Security is provided by eligible receivables and inventory.

"Our significant progress this year in debt reduction and improved operating performance has enabled us to enter into this new arrangement well in advance of the June 2003 maturity of our former facility," said Homi Patel, president and chief executive officer, in a company news release. "This new facility provides Hartmarx with additional borrowing availability, lower interest rates, the immediate repayment of a high-cost term loan of $15 million, the flexibility to retire our $25 million of senior unsecured notes prior to their September 2003 maturity, and elimination of several financial covenants. Entering into this new facility well ahead of schedule and having sufficient availability to pay off our notes prior to September 2003, is an important milestone in accomplishing our long-term objectives. We continue to anticipate a profitable second half and full year with a major improvement in earnings for 2003."

Hartmarx, headquartered in Chicago, Ill., is a producer and marketer of business, casual and golf apparel products.

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