The Dixie Group reports refinancing

Home News The Dixie Group reports refinancing

CHATTANOOGA, TENN.—The Dixie Group today reported it has refinanced its senior revolving credit facility together with the existing term loan secured by its Santa Ana property. The purpose of these transactions is to permit early redemption of the outstanding $9.7 million of 7% convertible subordinated debentures due in May of 2012 and to extend the Company’s financing for another five-year period.

The transaction, with Wells Fargo Capital Finance, as Agent and co-lender with Bank of America, consists of a new $90 million revolving credit facility with a five-year term and a term loan secured by the Santa Ana carpet facility, with Wells Fargo Bank, NA as lender. The term loan will increase from $5.5 million to $11.1 million. The company has fixed the interest rate on a portion of the variable rate debt represented by these credit facilities, with interest rate swap agreements through Sept. 1, 2016, as part of its ongoing risk management program. Further, the Company intends to announce repurchase of the remaining $9.7 million of outstanding 7% convertible subordinated debentures. The effect of these transactions will be to lower Dixie Group’s interest costs, extend its financing until 2016 and provide the financing facilities to accommodate future growth as the Company’s markets continue to rebound from the historic downturn of the last four years.

For more information, visit thedixiegroup.com.

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