FALL RIVER – Quaker Fabric Corp. this evening announced the closing of a refinancing deal it says will provide the company with about $49.6 million in senior secured financing.
The new arrangement includes: $25.0 million in secured revolving credit, with Bank of America NA acting as agent for the revolving credit lenders; and $24.6 million in secured term loans – a $12.5 million real estate loan and a $12.1 million equipment loan – with GB Merchant Partners LLC acting as agent for those lenders.
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As agreed in the refinancing deal, Quaker said, the proceeds of the new term loans were used to repay in full the company’s obligations under its May 18, 2005, term loan with Bank of America. The new secured and revolving credit agreements have maturity dates of May 17, 2010, the company said.
The new term loans are secured by a first-priority interest in all the company’s assets (real estate, machinery and equipment), Quaker said, while the revolving credit is secured by a junior interest in all the company’s assets.
“We believe these new financing arrangements to be consistent with Quaker’s strategic objectives and current operating and working capital needs – and we are pleased that we were able to bring out negotiations with Bank of America and GB Merchant Partners to a successful close,” Larry A. Liebenow, Quaker’s president and chief financial officer, said in an after-market statement announcing the deals.
“We look forward to continuing the execution of our restructuring plan, the strengthening of Quaker’s position of international leadership in our industry and restoring Quaker to profitability.”
Fall River-based Quaker Fabric Corp. (Nasdaq: QFAB) is a maker of woven upholstery fabrics for the U.S. and global furniture markets, and the world’s largest producer of Jacquard-weave upholstery fabric.
