Aristotle obtains $45 million revolver

By Sara Rosenberg

New York, Oct. 16 - The Aristotle Corp. closed on a new $45 million five-year revolving credit agreement. Bank One is the agent bank on the deal and Johnson Bank is involved as well.

Security is a substantial portion of the company's assets.

The new facility replaces the company's previous loan, which had a credit capacity of $31 million.

Proceeds will be used for seasonal working capital needs, letters of credit and acquisitions.

"The new credit facility provides [Aristotle] with a key financial tool for growth over the next five years, by supporting acquisitions targeted to add depth to our comprehensive product offerings, primarily in the education and health industries," said Steven B. Lapin, president and chief operating officer, in a news release.

"In addition, since the new credit facility requires no principal amortization for the next five years, [Aristotle] will be able to utilize better its seasonal cash flows, and the excess cash can be used for general corporate purposes. Under the previous credit arrangement, [the] company was required to pay down $9.0 million over the past twelve months, and would have been required to make other principal payments at intervals throughout its remaining term."

Aristotle is a Stamford, Conn. manufacturer and distributor of educational, health and agricultural products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.