Rocky Brands, Inc. Announces Refinancing of Term Loans
May 18 2010 - 7:00AM
Business Wire
Rocky Brands, Inc. (Nasdaq: RCKY) today announced that it has
received approval from the requisite lenders, including GMAC
Commercial Finance, LLC, under the Amended and Restated Loan and
Security Agreement, dated March 31, 2009, as amended from time to
time, to advance $15 million to the Company under the existing
revolving portion of its credit facility to prepay amounts due
under term loans with Laminar Direct Capital L.P. and Whitebox
Hedged High Yield Partners, L.P. After the prepayment, principal
under the term loans will total approximately $11 million in the
aggregate. The term loans have an interest rate of 11.5% payable
semi-annually over the five year term of the notes. Principal
repayment is due at maturity in May 2012. The interest rate for the
revolving portion of the Company’s credit facility is currently
LIBOR plus 3.75%.
The transaction is expected to generate approximately $1.1
million in interest savings annually based on the current LIBOR
rate. The transaction is expected to close on Wednesday, May 19,
2010.
About Rocky Brands,
Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and
marketer of premium quality footwear and apparel marketed under a
portfolio of well recognized brand names including Rocky®, Georgia
Boot®, Durango®, Lehigh®, and the licensed brands Michelin® and
Mossy Oak®.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of
1934, as amended, which are intended to be covered by the safe
harbors created thereby. Those statements include, but may not be
limited to, all statements regarding intent, beliefs, expectations,
projections, forecasts, and plans of the Company and its management
and include statements in this press release regarding interest
savings and the closing of the transaction (paragraph 2). These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation, the various risks
inherent in the Company’s business as set forth in periodic reports
filed with the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2009 (filed March 2, 2010) and quarterly report on Form 10-Q
for the period ended March 31, 2020 (filed May 3, 2010). One or
more of these factors have affected historical results, and could
in the future affect the Company’s businesses and financial results
in future periods and could cause actual results to differ
materially from plans and projections. Therefore there can be no
assurance that the forward-looking statements included in this
press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking
statements included herein, the Company, or any other person should
not regard the inclusion of such information as a representation
that the objectives and plans of the Company will be achieved. All
forward-looking statements made in this press release are based on
information presently available to the management of the Company.
The Company assumes no obligation to update any forward-looking
statements.
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