Brown Jordan amends credit structure, renews with Leisure Garden
Casual Living Staff -- Casual Living, February 15, 2005
Brown Jordan International, Inc. announced Dec. 31, 2004, it has amended its $90 million asset—based revolving credit facility to provide for a $5 million supplemental advance. The supplemental advance will not increase the aggregate $90 million facility amount under the revolver, but it is not subject to the revolver's borrowing base calculation.
The supplemental advance will carry interest at a Euro rate plus 450 basis points or a Base Rate plus 250 basis points. It will be due and payable on May 1, 2007, the maturity date of the revolver. The supplemental advance may be used for BJI's working capital needs. The supplemental advance will provide BJI with sufficient liquidity to fund its short-term working capital requirements and senior debt payment obligations. The Pompano Beach, Fla.-based company made the interest payment of approximately $3.7 million due Dec. 31 to the holders of its $135 million senior secured notes due May 1, 2007.
"This is good news for all our constituencies as we work with our debt and equity holders toward a long-term restructuring of our debt obligations," said James R. Malone, president and chief executive officer. "The company has made significant strides in the last few months in reorganizing and cost-cutting measures and in focusing on operational excellence. We appreciate our customers and vendors being so supportive of us in these efforts. This an important step for our company."
BJI also has renewed its exclusive supply agreement with Leisure Garden, one of China's leading outdoor furniture manufacturers. Under the renewed agreement, BJI will have sole use of LG's manufacturing facilities, totaling more than 2 million square feet.
The renewed agreement went into effect in December, with design and product development work already underway for the 2006 season. Shipments under this arrangement will start Aug. 1.
BJI's design, product development, order management and quality teams will work with LG over the next year to ensure manufacturing at LG's facilities will be seamless and meet the quality BJI demands.
BJI plans to continue its existing relationships with other China-based outdoor furniture manufacturers while expanding its supplier base throughout Asia.