Applica Amends and Restates Senior Credit Facility
Dec 27, 2005
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Small appliance maker Applica Incorporated announced that it has amended and restated its senior credit facility. The interest rate margins for the facility were lowered and the facility was reduced to U.S. $125 million from $175 million to eliminate unused capacity.

In addition, the required minimum average monthly availability was lowered by $15 million and the daily availability block was lowered by $10 million, providing Applica with additional liquidity.

"The amended facility gives us additional liquidity and better pricing through November 2009. This should provide comfort to all stakeholders and allows us to focus on improving our financial and operational performance," Terry Polistina, Applica's senior vice president and chief financial officer, said.

Advances under the amended credit facility are governed by Applica's collateral value, which is based upon percentages of eligible accounts receivable and inventories. At Applica's option, interest accrues on the loans made under the amended facility at either: LIBOR plus a specified margin (currently set at 1.75%), which was 6.12 percent on Dec. 22, 2005; or the Base Rate, plus a specified margin (currently set at 0 percent), which was 7.25 percent on Dec. 22, 2005.

As of Dec. 22, 2005, Applica was borrowing $77.7 million under the credit facility and had $37.5 million available for future cash borrowings. Pursuant to the amended facility, Applica is required to maintain a minimum average monthly availability of $13 million and has a daily availability block of $10 million.

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