MTS agrees on terms to refinance its credit facility through 2005

By Sara Rosenberg

New York, July 23 - MTS, Inc. has agreed on terms to refinance its credit facility through April 1, 2005. CIT Group/Business Credit Inc. will provide the company with the $125 million credit line. Furthermore, the company has agreed on terms of a $26 million supplemental loan from JP Morgan Chase and other lenders under the existing facility.

The loans will be finalized upon the execution of definitive loan documents and the simultaneous completion of the sale of Tower Record's Japanese operations to Nikko Principal Investments Japan Ltd.

Interest rates are not currently being disclosed, according to a company spokesperson.

"We are pleased with our new banking facilities, which form an important part of our financial strategy and, we believe, provide us with ample liquidity," said Michael Solomon, president and chief executive officer, in a company press release. "We plan to use the proceeds for general working capital needs and to invest in initiatives designed to enhance sales and profitability."

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

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