Brown Jordan International completes financial restructuring
November 1, 2006-- Casual Living,
Florida-based Brown Jordan International Inc. has restructured its financial affairs and secured a $50 million cash infusion, according to a company announcement. The company’s legal counsel said the move allows the company to avoid filing for Chapter 11 bankruptcy relief.
Securing the $50 million is expected to lower BJI’s financing costs substantially. Almost all of BJI’s $105 million in debt has been exchanged for cash or equity. With the support of its key stakeholders, BJI completed these restructuring transactions on a fully consensual basis without any disruption to business operations, the announcement stated.
The core of BJI’s restructuring is a $50 million equity investment provided by certain holders of the senior subordinated notes, in exchange for a controlling equity interest. Holders of BJI’s senior subordinated notes received a minority equity interest in exchange for their notes.
A group of financial institutions led by LaSalle Bank National Association has funded a credit facility of $200 million. With the proceeds of these financing sources, holders of BJI’s prior senior secured financing facilities, including its senior second lien notes, were paid in full, with interest. Trade creditors were not affected by the restructuring, and BJI expects to continue to pay them in the ordinary course of business.
“We are very excited to have completed our financial restructuring,” said Gene Moriarty, BJI CEO. “We believe the restructuring will provide us greater financial flexibility that will enable us to achieve strong growth, product enhancements and continued profitability.”
Company counsel, Jeff J. Marwil of Jenner & Block said, “As a result of a strong team effort among the company’s management and professionals, plus the overwhelming support of the senior subordinated noteholders, BJI was able to complete its restructuring out-of-court, without the need for Chapter 11 relief.”
BJI’s top management remains in place. In addition to Moriarty remaining as BJI’s chief executive officer, Vincent Tortorici remains as BJI’s chief accounting officer and the current senior management team in each of BJI’s businesses also remains in place.