Knoll $450 million credit facility to launch Thursday

By Sara Rosenberg

New York, Sept. 6 - Knoll Inc. is scheduled to hold a bank meeting on Thursday to launch its proposed $450 million credit facility, according to a market source.

UBS and Bank of America are the lead banks on the deal.

The facility contains a seven-year term loan and a five-year revolver.

Proceeds will be used to refinance the company's existing credit facility at a lower interest rate, with new financial covenants and a less restrictive policy toward the payment of dividends.

Knoll announced on Tuesday that, subject to the closing of the refinancing, its board of directors intends to declare and pay quarterly dividends of $0.10 per share on its common stock, double its current quarterly dividend.

"Our strong financial performance has put us in position to enter into a new and improved credit facility which will reduce our borrowing costs and increase the cash we return to shareholders in the form of increased quarterly dividends," said Andrew B. Cogan, chief executive officer, in a company news release.

Knoll is an East Greenville, Pa., designer and manufacturer of branded office furniture products and textiles.

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