Graham-Field Health Products, Inc. Enters into Commitment Letter With BankBoston, N.A. for a New $50 Million Credit Facility
BAY SHORE, N.Y., Aug. 31 /PRNewswire/ -- Graham-Field Health Products, Inc. (OTC Bulletin Board: GFIH), a manufacturer and supplier of healthcare products, announced that it has entered into a commitment for a two year senior secured revolving credit facility for $50 million of borrowings, including letters of credit, arranged by BankBoston, N.A., as agent. Under the terms of the proposed credit facility, borrowings will bear interest at the Bank's alternate base rate plus .50%. The new facility will refinance the current indebtedness under the Company's facility with IBJ Whitehall Business Credit Corp., and provide for the ongoing working capital needs of the Company. The credit facility will be secured by substantially all of the assets of the Company. The closing of the credit facility, anticipated for mid to late September, is subject to the execution of definitive documentation, completion of due diligence and other customary terms and conditions. Accordingly, there can be no assurance that the financing will be completed.
"BankBoston Business Credit is excited about working with both Graham-Field and Jay Alix & Associates, and we are looking forward to the successful turnaround of Graham-Field," said Thomas R. Sommerfield, division executive of BankBoston Business Credit. "This financial partnership is another step in the Company achieving its goals."
John G. McGregor, President and Chief Executive Officer, stated that "this new facility will provide Graham-Field with approximately $20 million of additional liquidity, thus enabling us to move ahead with our plan to return the Company to profitability." |
