CFM Corp. (Mississauga,Ontario, Canada) has renegotiated its credit lines to 2006, giving the fireplace and barbecue maker access to more money to help finance future growth.
The announcement by CFM last week was just a day after the Toronto-area company earned CAN $4.9 million in the fiscal fourth quarter, well off the $14.6 million it made last year. Sales increased to $185.6 million from $183 million, but the company took an $8-million restructuring charge after shifting some 300 jobs to Mexico from China.
This amended credit line with its bankers gives CFM access to up to $190 million in loans to Nov. 26, 2006. The extended credit came about in conjunction with CFM's recently completed private placement of U.S. $125 million of senior unsecured notes.
"We are very pleased to have completed the amendment and extension to our credit agreement," said David Wood, CFM's CFO. "With $190 million of revolving credit now extended to 2006, in addition to our long-term notes, we have access to total debt facilities greater than $350 million to fund CFM's operations and future growth plans."
CFM cooled its forecasts in May after announcing it had missed out on a major sale due to "competitive pressures." Since then, CFM has launched a restructuring initiative aimed at saving $15 million a year.
Shares in CFM rose $0.15 cents to $9.60 in trading on the Toronto stock market following the announcement. (Canadian Press)
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