Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Tile Shop Holdings Inc. > News item |
Tile Shop gets $100 million revolver at Libor plus 175 bps via BofA
By Susanna Moon
Chicago, Sept. 19 – Tile Shop Holdings, Inc. obtained a $100 million revolving line of credit with an initial rate of Libor plus 175 basis points, according to an 8-K filing with the Securities and Exchange Commission.
Tile Shop and operating subsidiary Tile Shop, LLC entered into a credit agreement on Tuesday with Bank of America Merrill Lynch as lead arranger and bookrunner, Bank of America, NA as administrative agent and Fifth Third Bank as syndication agent.
Interest on the loans will range from Libor plus 150 bps to 225 bps, based on leverage.
The credit agreement replaces the company’s senior secured credit facility with Fifth Third Bank dated June 2, 2015.
In addition to increasing the line of credit from $75 million, the credit agreement also provides additional flexibility for the company’s fixed-charge coverage ratio covenant, which was eased to 1.25 times from 1.35 times.
The calculation of the consolidated total rent adjusted leverage ratio is now based on six times the trailing four-quarter rent expense, compared with eight times the trailing four-quarter rent expense under the previous facility.
The company said it drew on the line of credit to refinance all of the debt under the company’s facility.
Proceeds may be used to support the company’s growth and for working capital purposes.
Tile Shop is a Plymouth, Minn.-based specialty retailer of manufactured and natural stone tiles and setting and maintenance materials.
© 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.