FALL RIVER – Quaker Fabric Corp. says it has achieved a preliminary refinancing agreement with Bank of America N.A., as agent, and GB Merchant Partners LLC.
The agreement would provide the company with about $50.0 million of senior secured financing going forward, Quaker said in a Tuesday news release.
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Under the preliminary agreement, the company’s current senior secured credit facility with Bank of America would be amended to provide Quaker with a $25.0 million revolving credit facility going forward. That line would be secured by all of the company’s assets except for real estate and machinery and equipment. The transaction would also result in the repayment, in full, of Quaker’s obligations under the term-loan portion of its existing senior secured credit facility with the bank.
GB Merchant Partners would provide Quaker with two senior secured term loans, of up to $12.5 million each. One would be secured by Quaker’s real estate, and the other by the company’s machinery and equipment.
The agreements with the bank and GB both would run through May 17, 2010.
“This represents an important milestone in our efforts to put new financing arrangements in place consistent with Quaker’s strategic objectives and current operating and working capital needs,” Larry A. Liebenow, Quaker’s president and CEO, said in a statement late yesterday.
“We look forward to working with Bank of America and Gordon Brothers to bring this financing to a successful conclusion as quickly as the required approval, due diligence and documentation processes permit.”
Fall River-based Quaker Fabric Corp. (Nasdaq: QFAB) is a leading manufacturer of woven upholstery fabrics and the world’s largest producer of Jacquard-weave upholstery fabrics.
