HMY Roomstore gets commitment for $35 million exit financing

New York, March 21 - HMY Roomstore, Inc. has a commitment for a $35 million exit facility via Bank of America Retail Finance and is asking the U.S. Bankruptcy Court for the Eastern District of Virginia to approve the financing.

The facility will be a $35 million five-year revolver, but the company will have the option to start with a $30 million facility and subsequently increase it to $35 million. Letters of credit will be limited to $15 million.

Interest will be at Libor plus 150 basis points, and there will be a 25 basis point unused line fee.

HMY Roomstore will be able to use the facility for general corporate purposes.

Availability will be set by a borrowing base.

A hearing to approve HMY Roomstore's acceptance of the facility and payment of a deposit is scheduled for March 30.

Requesting approval, the company said it reviewed proposals from "numerous" financial institutions and determined the Bank of America offered the most favorable terms to HMY Roomstore and its creditors.

HMY Roomstore's disclosure statement was approved on March 10, and a confirmation hearing is set for April 21.

HMY Roomstore is a Richmond, Va.-based home furnishing retailer that will emerge as the surviving company from Heilig-Meyers Co.'s Chapter 11 case. Heilig-Meyers will be liquidated.

Heilig-Meyers filed for bankruptcy on Aug. 16, 2000 with the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 00-34533.

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