MTS extends bank loan maturity date to Sept. 15

By Sara Rosenberg

New York, June 24 - MTS Inc. said it extended the maturity date of its existing credit facility to Sept. 15, 2002 from June 23, 2002. Under the amendment, the company is required to receive and execute signed commitments for the refinancing of its credit facility.

The company's extension is expected to accommodate the completion of the sale of its Japanese operations to Nikko Principal Investments Japan Ltd. and the refinancing of its credit facility. The stock purchase agreement will be terminated if the transaction does not close before Aug. 15.

On June 14, the company announced in a filing with the Securities and Exchange Commission that it received a commitment letter from CIT Group/Business Credit Inc. for $125 million to refinance a portion of it existing credit facility.

MTS, which does business as Tower Records, is a West Sacramento, Calif. specialty retailer of music.

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