FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Kid Brands Refinances Credit Facility With Salus Capital Partners

December 24, 2012, 07:32 AM

Kid Brands, Inc. announced it has refinanced its existing senior credit facility with Salus Capital Partners, as lender, administrative agent and collateral agent. The Salus Credit Agreement provides for an aggregate maximum $80 million revolving credit facility, consisting of a revolving $60 million tranche (Tranche A Revolver) and a $20 million first-in last-out tranche. The Tranche A Revolver is subject to borrowing base limitations based on a specified percentage of eligible accounts receivable and eligible inventory, net of specified reserves.

The revolver is subject to a specified cap and to borrowing base limitations based on the lesser of: (i) a specified percentage of the fair market value of specified registered eligible intellectual property, net of reserves; and (ii) the aggregate commitments for the Tranche A-1 Revolver at such time ($20.0 million at the time of closing). Outstanding loans under the Salus Credit Agreement are due and payable on December 21, 2016 (subject to early termination provisions).

In connection with the execution of the Salus Credit Agreement, all outstanding obligations under the company's previous credit agreement (approximately $55.3 million) were repaid using proceeds therefrom. As a result of such refinancing, the company anticipates that it will write off, in the fourth quarter of 2012, approximately $1.0 million to $1.5 million in unamortized deferred financing costs originally incurred in connection with the terminated credit facility.

Guy Paglinco, chief financial officer of the company, commented, "We are very pleased with this new credit facility, which provides Kid Brands with improved financial flexibility, as well as with the relationship we have established with Salus Capital. We believe that their understanding of our business and market segment will be a valuable asset to Kid Brands."

East Wind Securities acted as financial advisor to the Company in connection with the refinancing.

Kid Brands, Inc. and its subsidiaries are leaders in the design, development and distribution of infant and juvenile branded products. Its design-led products are primarily distributed through mass market, baby super stores, specialty, food, drug, independent and e-commerce retailers worldwide.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.