CSS Industries obtains five-year $125 million asset-based revolver

By Wendy Van Sickle

Columbus, Ohio, March 7 – CSS Industries, Inc. entered into a new five-year $125 million asset-based senior secured credit facility, according to a press release.

JPMorgan Chase Bank, NA is the administrative agent with Bank of America, NA and KeyBank, NA also participating.

The facility includes a $25 million expansion feature.

Borrowings bear interest at Libor plus a margin ranging from 200 basis points to 250 bps, based on the fixed-charge coverage ratio.

There is a commitment fee of 25 bps per annum on the average daily unused portion of the commitment.

The new credit facility expires in March 2024 and replaces the company’s prior credit facility, which was scheduled to expire in March 2020.

Proceeds will be used to refinance existing debt, as well as for working capital needs and other general corporate purposes. About $36.5 million was outstanding at closing.

“This new asset-based facility will serve the needs of our business during our fluctuating working capital cycle, and is expected to provide us with more than sufficient liquidity to meet our ongoing needs,” commented Keith W. Pfeil, CSS executive vice president and chief financial officer, said in the release.

“In the near term, we will continue to aggressively pay down our outstanding debt, while we seek to right size our existing business structure.”

CSS is a Philadelphia-based consumer products company that designs, manufactures, procures, distributes and sells seasonal and all-occasion social expression products.

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