Hooker Furniture gets commitment for $90 million acquisition financing

By Angela McDaniels

Tacoma, Wash., Jan. 7 – Hooker Furniture Corp. received a commitment on Tuesday from Bank of America, NA to provide a $90 million senior credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The commitment was provided in connection with Hooker’s agreement to acquire Home Meridian International, Inc. for $85 million of cash and $15 million of stock.

“Although Hooker Furniture Corporation has been debt-free for some time, we look at this acquisition as an excellent way to put excess capital to work and use our pristine balance sheet to layer in a manageable amount of low-cost debt,” Hooker chairman and chief executive officer Paul Toms Jr. said in a company news release.

The companies reached an agreement about the acquisition on Tuesday, and they expect the acquisition to close during the first quarter but not prior to Feb. 1.

Among other conditions, the acquisition is subject to the receipt of financing on terms substantially similar to those provided for in Bank of America’s commitment letter.

Under the agreement, Hooker will not assume Home Meridian’s debt.

Hooker Furniture is a residential wood, metal and upholstered furniture company based in Martinsville, Va.

Home Meridian International is the parent company of Pulaski Furniture, Samuel Lawrence Furniture, Samuel Lawrence Hospitality, Prime Resources International and Right 2 Home. It is based in High Point, N.C.

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