Salton, Inc. (Lake Forest, IL, U.S.) announced that it has entered into an amended and restated U.S. $275-million revolving credit agreement with Silver Point Finance, LLC. The agreement amends and restates the small appliance maker's existing bank credit facility and expires on June 15, 2007.
Salton said the agreement provides it with more flexible financial covenants and borrowings under the agreement, and will accrue interest at a spread of 500 basis points above LIBOR, with a minimum interest rate of 7 percent. The facility, which will initially limit aggregate borrowings to $207 million, will allow the appliance company to borrow approximately $30 million more than under its previous bank credit agreement. The agreement includes the ability to refinance tranches of the loan to reduce borrowing costs.
Salton said further details on the new agreement may be found in a form 8-K filing to be filed this week.
Back to Breaking News