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Chromcraft Revington, First Capital Ink $9MM ABL Deal

June 04, 2013, 07:43 AM
Filed Under: Manufacturing

Chromcraft Revington refinanced its credit facility on May 31, 2013 and entered into a new three year secured revolving credit facility with FCC, LLC (“First Capital”) of up to $9 million based upon eligible accounts receivable and inventory of the company.

The new facility with First Capital replaces the company’s prior $5 million credit facility with Gibraltar Business Capital, LLC. The company believes the new facility provides several important benefits as compared to the prior credit facility, including: increased availability and borrowing capacity due in part to the inclusion of inventory in the borrowing base; an extended term of three years; more favorable net income (loss) financial covenants; and the ability to obtain a mortgage or synthetic lease on the company’s Senatobia, Mississippi plant subject to certain limitations. The company also believes the new facility provides the Company with the borrowing capacity to meet the Company’s anticipated cash operating needs for at least the next twelve months and, in addition, provides greater flexibility than the prior credit facility.

Ronald H. Butler, the company’s chairman and chief executive officer, commented, “The increased borrowing capacity provided under our new credit facility with First Capital, along with the recent acquisition of ownership of our Senatobia plant pursuant to a property exchange with Tate County, Mississippi on May 30th, better positions the company as it manages through a difficult economic environment and seeks to return to profitability.”

Chromcraft Revington businesses design, manufacture and import residential and commercial furniture marketed primarily in the U.S. The company wholesales its residential furniture products under Chromcraft, Cochrane, Peters-Revington, and CR Kids & Beyond primary brands. It sells commercial furniture under the Chromcraft and Executive Office Concepts brands. The company sources furniture from overseas suppliers, with domestic contract specialty facilities, and operates a U.S. manufacturing facility for its commercial furniture and motion based casual dining furniture in Mississippi and a manufacturing facility for office suites and other commercial furniture lines in California.

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